IT giant Fujitsu ended its search for a buyer of its mobile phone business after reaching a preliminary agreement with Tokyo-based investment fund Polaris Capital Group.
The companies are working on a deal worth between JPY40 billion ($366 million) and JPY50 billion, Nikkei Asian Review reported. An official agreement, which would see Fujitsu sell a majority stake in the unit, is expected by the end of the month, with separate reports stating Polaris Capital’s long-term goal is to list the business.
Nikkei Asian Review said a likely condition for a deal is for Polaris Capital to retain the mobile unit’s staff and factories.
Local media reported in August 2017 the company was looking to sell its handset business, with interest at the time from a number of companies including Polaris Capital.
Fujitsu’s smartphone sales plummeted in recent years as competition intensified globally. In February 2016 the company spun off its mobile phone operations, which it said was non-core, into a separate company and began searching for a partner.