Panasonic Connect Co., Ltd. announced today that it had reached an agreement on a strategic capital partnership with ORIX Corporation, encompassing the company’s operations in projectors and related operations. Both companies plan to establish a new company, which will continue its operations with the intent of further dynamic development. This decision was made today at a meeting of the board of Panasonic Holdings Corporation.
Outline of Cooperation
Panasonic Connect will co-establish a new company with ORIX to service the Panasonic Connect Media Entertainment Business Division (MEBD). The objective is to further develop the segment of professional projectors and monitors. Within the scope of this cooperation, ORIX will own 80% of the shares, and Panasonic Connect will own 20%. After establishing the capital partnership, targeted products will still be present under the Panasonic brand, and the newly established company will also use the Panasonic name.
Purpose and Objectives of Cooperation
Since the launch of the first cathode-ray tube (CRT) projector in 1975, Panasonic’s professional projectors and monitors sector has released a wide range of products utilizing patented device control technology1. Over the past 50 years, the company has gained the trust of customers worldwide, and thanks to its leading market share in high-brightness projectors2, the company has established a strong position in the visual solutions industry.
On the other hand, the market relevance of software integration with advanced hardware has increased, and with the emergence of new technologies and demand for immersive experiences, significant changes have occurred in the market for visual products. To achieve organic growth and further market expansion in the future, the company recognized the need to beef up operational investment activities.
In light of these circumstances, both companies agreed that further development could be achieved by leveraging Panasonic’s technological knowledge and customer base, as well as ORIX’s investment strength, along with its know-how gained from business investments in many manufacturing companies and large corporations.
ORIX, with which Panasonic Connect is cooperating, is an investment company providing various financial services and engaging in business activities from a medium and long-term perspective. With this capital partnership, Panasonic Connect intends to leverage ORIX’s rich investment experience to realize organic growth strategies and continuously invest in hardware technology development and the establishment and implementation of strategic alliances globally.
About the New Company
The new company belonging to Panasonic Connect and ORIX is scheduled to begin operational activity in April 2025, will be established from the Media Entertainment business division of Panasonic Connect. For this unit’s sales functions in North America, Europe, China, Australia, Singapore, and other regions, overseas subsidiaries will be established and managed by the new company. In Japan, domestic sales will continue to be handled by Panasonic Connect’s Gemba Solutions Company.
Operational startup: Planned for April 1, 2025
Operational startup is planned for April 1, 2025, subject to certain preliminary conditions such as obtaining the approval of relevant authorities.
Capital investment: ORIX Corporation: 80%. Panasonic Connect Co., Ltd: 20%.
Operations: Professional projectors and monitor business.
Note: The successor will be a Special Purpose Company (SPC), in which ORIX and Panasonic will hold 80% and 20% shares respectively.
About Strategic Capital Partner: ORIX Corporation
Established: April 1964
Representative: Makoto Inoue, President and CEO
Capital: 3,941,466 million yen (as of March 2024, GAAP)
Headquarters: World Trade Center Building, SOUTH TOWER, 2-4-1 Hamamatsu-cho, Minato-ku, Tokyo, 105-5135, Japan
Website: https://www.orix.co.jp/grp/en/
*1: Detailed control technology for basic devices allows for the creation of compact, light, bright, and high-quality projectors.
*2: Source: PMA PMA_2023CYQ2_WorldwidePJCensusRevenues, sales amount of Pro versions only, excluding D-Cinema, 10,000 lm or more.
*3: Currently, we are negotiating with foreign sales companies to establish a new company.
Source: https://managerplus.pl/panasonic-connect-wchodzi-w-strategiczne-partnerstwo-kapitalowe-85905
