By Takashi Amano and Mariko Yasu on September 28, 2012 – Bloomberg Businessweek
Sony Corp. (6758), Japan’s largest consumer-electronics exporter, will invest 50 billion yen ($645 million) in Olympus Corp. (7733) as part of its strategy to move into the medical-equipment business.
The two companies will form a joint venture to make endoscopes and other medical devices, according to finance ministry filings today. Olympus is the world’s largest endoscope maker with a 70 percent market share.
Sony President Kazuo Hirai set a goal of entering into new businesses when he took over in April with the company reeling from four years of losses. The investment will help Olympus, which admitted to a 13-year accounting fraud last year, shore up its capital ratio as it recovers from the scandal that led the company to restate earnings and replace its entire board.
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“There can be synergies between the two companies as Sony’s image sensors can be used in endoscopes,” said Yuji Fujimori, a Tokyo-based analyst at Barclays Plc. “Still, it may take time for their businesses to bring results as medical equipment usually needs regulatory approval before going on sale.”
