Mar 25, 2020 12:36 JST

Source: NEC Corporation

NEC and Sharp Announce Joint Venture to Combine Display Solution Businesses

TOKYO, Mar 25, 2020 - (JCN Newswire) - NEC Corporation (TSE: 6701) and Sharp Corporation (TSE: 6753) have agreed to create a joint venture by combining NEC Display Solutions, Ltd. (NDS), a subsidiary of NEC, with Sharp.

NDS and Sharp are two market-leading brands in the production and development of visual solutions. The Sharp-NEC joint venture will allow both companies to build upon their strengths and address the visualization needs of their global customers.

NDS is widely recognized as a leading global provider of visual technology and digital signage solutions for a variety of markets. With a comprehensive, solution-oriented portfolio and reputation as a provider of high-quality displays, NDS has a strong worldwide presence with a large number of global customers.

Like NDS, Sharp is a worldwide developer of innovative business products, including professional and commercial displays, and advanced technologies like next-generation 8K-Ultra High Definition monitors.

"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 Hisatsugu Nakatani, President, NEC Display Solutions, Ltd. "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."

"The combination of Sharp's and NDS' international strengths is mutually complementary," said Fujikazu Nakayama, Senior Executive Managing Officer, Sharp Corporation and BU President, Business Solutions BU. "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 NDS 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 NDS 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 1st, 2020.

Source: NEC Corporation
Sectors: Electronics

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