Sony-Olympus Form Medical Device Partnership

Created: 2012-10-01 14:52 EST

Category: World > Asia Pacific
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Sony is becoming the biggest shareholder of Olympus, forming a partnership in medical equipment development after buying the stake for 50 billion yen, or $643.5 million USD.

Olympus, a Japanese camera and endoscope maker, has been strapped for cash after having to cover for losses due to a scandal that dates back to the 1990s.

The new deal will have Sony holding an 11.46 percent stake through newly issued shares of Olympus, with that likely increasing over the years.

Explaining their decision on monday, Sony Corp. Chief Executive Kazuo Hirai said the risks of entering into a new market will be mitigated in the venture.

[Kazuo Hirai, Sony President]:
"With the Sony and Olympus partnership, it is our hope that together we can make a comeback through innovation, and provide high quality medical equipment for people around the world."

While Sony's television production has not been making money, they hope to incorporate impressive technologies such as 3D and 4K into endoscopes.

The two companies are also planning to co-operate in producing digital cameras.

Olympus Corp shares moved up 1 percent and Sony also went up 5 percent with the news.

Tags: Sony-Olympus  Partnership  Sony  Olympus  Japan