NEC Corporation and Sharp Corporation have agreed to create a joint venture by combining NEC Display Solutions, Ltd. (NDS), a subsidiary of NEC, with Sharp. NDS is a global provider of visual technology and digital-signage solutions for a variety of markets. Like NDS, Sharp is a worldwide developer of business products, including professional and commercial displays.
“The combination of Sharp’s and NDS’ international strengths is mutually complementary,” Fujikazu Nakayama, Senior Executive Managing Officer, Sharp Corporation and BU President, Business Solutions BU, said. “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-percent ownership of NDS to Sharp, and retain a 34-percent 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.