Sony Corporation agrees to acquire Toshiba’s image sensor business. Though the financial terms of the deal has not been disclosed, sources suggest that it could be worth $166 million. This deal seems to be a means to recover for Toshiba from its recent $1.3 billion worth accounting scandal.
The formal announcement by Sony states that it would reach a formal agreement before the end of the current year, with plans for the deal to be completed by March 2016. Further to the acquisition, Sony confirms that Toshiba’s employees working at the facilities and those who are involved in the engineering and design department would be moved or given employment opportunities at Sony.
Quite recently, Sony unveiled its plans to start its own image sensor business called Sony Semiconductor Solutions. The acquired Toshiba’s image sensor business has been planned to be integrated into the new operation. According to Sony, “This acquisition will enable Sony to increase its production capabilities in the area of CMOS image sensors, where further market growth is anticipated.” Toshiba’s plant will be used to manufacture CMOS image sensors, which are used in a variety of technological applications.
Sony’s image sensor business is one of its valuable at this point, with the fast growth and success in the recent years. In 2014, image sensors market saw Sony dominate with 40% of production, which has its chips in every new iPhone and Galaxy S6. Now this latest acquisition deal would only strengthen Sony’s image sensor market.