NEC Corporation (NEC, TSE: 6701) and Sharp Corporation (Sharp, TSE: 6753) have agreed to create a joint venture by combining NEC Display Solutions, Ltd., a subsidiary of NEC, with Sharp.
Hisatsugu Nakatani, President, NEC Display Solutions, Ltd. said “NEC offers one of the broadest visual solutions portfolios in the industry, and with a consultancy-led sales approach, NEC is recognized as a trusted advisor and total solutions provider,” said This joint venture between Sharp and NEC Display Solutions will bring even greater value and benefits to customers and partners by extending our state-of-the-art product portfolios together with a range of professional service offerings. Sharp and NEC Display Solutions follow the same strategic approach to the future of visual solutions, focusing on superior customer satisfaction enabled by high quality products, sales leadership excellence and committed relationship building.”
Fujikazu Nakayama, Senior Executive Managing Officer, Sharp Corporation and BU President, Business Solutions BU said “The combination of Sharp’s and NDS’ international strengths is mutually complementary. We expect this agreement to result in a wide range of synergies, including economies of scale and business expansion in new categories, including an 8K+5G Ecosystem. Sharp believes that developing NEC Display Solutions, Ltd. as a joint venture with NEC will contribute to our business growth by enforcing our BtoB business and expanding sales.”
Under the terms of the transaction, NEC will transfer 66% ownership of NEC Display Solutions, Ltd. to Sharp, and retain a 34% equity stake in the business. The joint venture will continue to provide NEC branded products. NEC will also continue to sell the joint venture’s products and solutions to its customers around the world. The transfer is scheduled to be concluded on July 1, 2020.