Hisense Electric Co. Ltd, a publicly listed subsidiary of Hisense Group, announced agreements on November 14 to purchase a series of businesses including Toshiba TV productions, brand & operation services.
Hisense will purchase 95% stock shares of Toshiba Visual Solutions Corporation (“TVS”), a wholly owned subsidiary of Toshiba Corporation for 12.9 billion Japanese Yuan. Toshiba will hold the remaining 5% stock rights. Hisense will obtain the TV businesses including production, research and development, and sales functions. Meanwhile, TVS will acquire a worldwide 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 in Europe, SE Asia and elsewhere.
TVS primarily operate Toshiba TV and various ancillary products, including commercial display and advertisement display products. TVS has two factories in Japan, hundreds of R&D employees and has a ‘significant IP portfolio’ related to TV business – including patents related to TV image quality and acoustics.
Hisense Group chief executive Liu Hongxin said that Hisense will ‘optimise TVS’s resources on R&D, supply chain and global sales channels by cooperating with and supporting each other’s display technology’, with the aim of ‘providing competitive content operation services for smart TVs for the global market and accomplishing continued and fast growth in the Japanese market’.
According to the IHS, sales of Toshiba TV ranked number three in the Japanese market in 2016. At present, the company adds, Hisense TV’s market share in the Japanese market is the highest among foreign brands, and the market share of Toshiba brand and Hisense brand is 20% of the TV market in Japan.
With the benefit of this acquisition, Hisense says it will develop and enlarge its international strategy TV business in R&D, branding and marketing by operating under multiple brands, with cooperation between Hisense and Toshiba helping to drive changes in the TV business.