Sony Corp. will acquire Ericsson’s 50 percent stake in Sony Ericsson Mobile Communications AB (Sony Ericsson), the mobile handset joint venture business, for 1.05 billion euros ($1.49 billion U.S.) in cash.
That means the business will become a wholly owned subsidiary of Sony.
Sony said the deal allows it to rapidly integrate smartphones into its portfolio of network-connected consumer electronics devices, including tablets, TVs and personal computers. Sony also benefits from a broad intellectual property cross-licensing agreement as well as ownership of five patent families related to wireless handset technology.
“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," Sony Chairman, President and CEO Sir Howard Stringer said in a statement. “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."
Ericsson and Sony expect the deal to close in January following customary closing conditions, including regulatory approvals.
London-based Sony Ericsson employed 7,500 individuals at the end of last year and reported 2010 sales of 6.294 billion euros ($8.93 billion U.S.).
