Hisense Electric, a publicly listed subsidiary of Hisense Group, has agreed to buy 95% of the shares of Toshiba Visual Solutions Corporation, a wholly owned subsidiary of Toshiba Corporation, for 12.9 billion Yen (R1.6 billion).
Hisense will obtain the TV businesses, including production, research and development, and sales functions. TVS will acquire a license to use the Toshiba brand in connection with its visual solutions products and services for a period of 40 years, including in connection with TVS’s existing business partners operating in Europe, South East Asia, and elsewhere.
Hisense said it will expand the international strategy for its TV business in the areas of R&D, branding, and marketing – with plans to operate under multiple brands.
It said Toshiba has two factories in Japan, hundreds of employees, and a significant intellectual property portfolio related to the TV business.
This includes patents related to TV image quality and acoustics.
“The cooperation between Hisense and Toshiba will drive changes to the new picture of TV business,” said Hisense.