Japanese tech giant Sony has announced plans to buy Swedish partner Ericsson out of their 50/50 handset manufacturer JV Sony Ericsson for E1.05bn (US$1.476bn) in cash.
According to a joint statement, the move will support Sony’s plan to further…
Japanese tech giant Sony has announced plans to buy Swedish partner Ericsson out of their 50/50 handset manufacturer JV Sony Ericsson for E1.05bn (US$1.476bn) in cash.
According to a joint statement, the move will support Sony’s plan to further integrate its smartphones into a range of devices, from tablets to TVs. The transaction also includes a “broad” IP cross-licensing agreement.
For Ericsson, the move will allow it to further focus on the global wireless market as a whole, as the synergies it sees between its technology/telecoms services portfolio and its handset operations decrease.
“This acquisition makes sense for Sony and Ericsson, and it will make the difference for consumers, who want to connect with content wherever they are, whenever they want,” said Sony chairman Howard Stringer.
“With a vibrant smartphone business and by gaining access to important strategic IP, notably a broad cross-license agreement, our four-screen strategy is in place. We can more rapidly and more widely offer consumers smartphones, laptops, tablets and televisions that seamlessly connect with one another and open up new worlds of online entertainment.”
Hans Vestberg, president and CEO of Ericsson, said: “Ten years ago when we formed the joint venture, thereby combining Sony’s consumer products knowledge with Ericsson’s telecommunication technology expertise, it was a perfect match to drive the development of feature phones. Today we take an equally logical step as Sony acquires our stake in Sony Ericsson and makes it a part of its broad range of consumer devices.
“We will now enhance our focus on enabling connectivity for all devices, using our R&D and industry leading patent portfolio to realize a truly connected world.”
Ericsson was financially advised by SEB. A spokesman for the group declined to disclose its legal advisers. A spokeswoman for Sony declined to disclose any adviser details.
The companies expect to close the transaction in January 2012.
