IT giant Fujitsu sealed a deal to sell a 70 per cent stake in its mobile unit to Tokyo-based investment fund Polaris Capital Group for an undisclosed fee.
Fujitsu said it had reached a preliminary agreement with Polaris last week, with Nikkei Asian Review reporting a value of between JPY40 billion ($366 million) and JPY50 billion, and the deal is now confirmed.
Under the terms of the agreement, Fujitsu said it will retain a 30 per cent stake in the unit, Fujitsu Connected, as well as shares in a new company which will be established by Polaris. While financial details remained undisclosed, Fujitsu added it expects the sale to contribute around JPY30 billion to its fiscal 2017 earnings.
In February 2016, Fujitsu spun off its mobile business, which it said it was non-core, and began searching for a partner as competition intensified and sales plummeted. The first reports the company was looking to sell the business appeared in August 2017.
The deal with Polaris is expected to complete in March this year.