© nomadsoul1 dreamstime.com Electronics Production | October 01, 2012
Sony buys 11.5 percent stake in Olympus
Sony formed an alliance with the struggling Olympus on Friday, investing 640 million USD to buy an 11.5 percent stake in the company. Plans for a joint venture to develop medical devices by the end of December are in the works.
Sony, which will now be Olympus's largest share-holder, will also own 51 percent of the medical devices joint venture which will develop equipment such as endoscopes used in key-hole surgery. “As part of our strategic initiatives announced in April 2012, at Sony we are aggressively pursuing the growth of our medical business, with the aim of developing it into a key pillar of our overall business portfolio. The business and capital alliances we have agreed with Olympus today will be integral to these plans,” said Kazuuo Hirai, President and CEO, Sony Corporation in a press release. The deal will strengthen Olympus's financial base, sorely need after former executives at Olympus recently pleaded guilty to covering up losses of 1.7 billion USD.