Months after announcing plans to seek a serious capital infusion, Japan's Olympus ($OCPNY) appears to have chosen Sony ($SNE) as the suitor suited for the task.
Reuters reports that Sony is expected to sign off on investing about 50 billion yen ($642 million) into the world's largest endoscope maker (also known for its cameras). Olympus badly needs the money in the wake of a massive accounting scandal that became public late last year after the company lost 49 million yen in the fiscal year ending March 31, the story notes. When the deal is done, Sony would gain a 10% stake in the company and become its largest shareholder. The Reuters piece also adds that Sony would team up with Olympus to develop new medical equipment.
If the deal closes as expected, it would end a courtship that has involved Olympus talking with a variety of investment suitors, including Fujifilm and Terumo. Sony appears to have won because Olympus could be allowed more independence with its investment, according to the article.
Sony, in turn, finally gets to follow through on expectations that it will boost its presence in various medical device and technology business lines to compete with archrival Samsung.
- read the Reuters story