August 24, 2012 -- Olympus Corporation today announced that it will transfer the information and communication business operated by its consolidated subsidiary ITX Corporation to Japan Industrial Partners, Inc., a leading investment fund in Japan, for the sum of 53 billion yen on September 28.
ITX's information and communication business, which centers on sales of mobile terminal devices such as mobile phones, has contributed steadily to Olympus Group earnings, including net sales of JPY 229.4 billion and operating income of JPY 5.3 billion for the fiscal year ended March 2012.
Olympus has determined, however, that the business's continued growth require a rapid and aggressive allocation of resources, including manpower and funding, as well as an aggressive expansion of retail activities and related investment in human resources. Furthermore, Olympus has determined that the business itself is not aligned sufficiently close with the core business domains targeted under the Group's medium-term business plan.
For these reasons, Olympus determined that the most suitable course of action would be to transfer this business to another company.
The funds from the business transfer are expected to be recorded as extraordinary income in the Group's consolidated earnings for the current second quarter ending September 31. Olympus will carry out due diligence to carefully examine the assets before completing the transfer. The impact on performance is unclear at the moment, but Olympus will announce any impact as soon as a final determination is made.
In the "Back to Basics" medium-term plan announced by Olympus on June 8, one of the key strategies is rebuilding the Group's business portfolio and optimally allocating Group resources. Efforts are now being made to strengthen Medical, Life Science & Industrial, and Imaging businesses, the core business domains of the Group.
In the case of non-core business domains, Olympus has been considering optimized measures to increase the value of these businesses, or selling or withdrawing from those businesses judged to be difficult to continue operating due to weak business prospects and/or weak correlation with the Group's core business domains.
Olympus has determined that the transfer could provide the information and communication business with opportunities for further growth, as well as help to maximize value for Olympus shareholders, by aligning the business with the substantial know-how and capital of Japan Industrial Partners, a company with abundant experience and success in helping subsidiary companies go independent and parent companies divest themselves of businesses.
Olympus will continue to actively evaluate and reorganize its non-core business domains while investing strategically in core business domains. Olympus also will work to enhance corporate value through its medium-term strategies, including review of cost structures, restoration of financial health and restructuring of corporate governance.
For more information, please visit http://www.olympus-global.com/en/news/2012b/nr120824corpe.html
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