Olympus and Sony have announced a business alliance agreement and a capital alliance agreement.
It has been announced that the companies have entered into the agreements through a third party allotment of Olympus' common shares to Sony.
The two businesses aim to enhance their competitiveness, primarily in the area of digital compact cameras, including the supply of Olympus technologies such as the camera lenses and mirror cells to Sony, and the provision of the Sony image Sensor to Olympus.
The business and capital alliances are expected to allow the two companies to combine Olympus' lens and optical technologies with Sony's broad range of technologies including digital imaging technologies and apply them in the rapidly growing medical market. This means products such as endoscopes and video microscopes are to be made by the companies. The medical business venture is expected to become a consolidated subsidiary of Sony.
Sony and Olympus anticipate extensive opportunities to create new products and businesses and contribute to the medical industry. In addition, Olympus and Sony plan to explore opportunities for collaboration between their respective camera businesses including transactions involving core components primarily for compact digital cameras, with the aim of enhancing the corporate value of each company.
Olympus will issue 11% of its shares to Sony, and the first payment is expected to be in October 2012.