Sony already dominates the image sensor business, and makes some of the best smartphone cameras around. Now the Japanese giant is set to grab even more of the market after confirming plans to buy up local rival Toshiba‘s competing division.
The two companies confirmed the news on Wednesday, following rumors of a deal earlier in the week. The official price wasn’t revealed, though one anonymous insider told Reuters that Sony will pay ¥20 billion (roughly $166 million). In return Sony gets Toshiba’s image sensor factory, located in southern Japan, along with 1,100 new employees.
The deal is part of a larger restructuring effort from Toshiba, which also plans to shut down its LED business. Earlier this summer the company was caught cooking its books and making up about $1.2 billion in revenue. The CEO and a few other directors quickly resigned, but Toshiba still has a long road to recovery.
For Sony the deal will help solidify its top spot in a key industry. The company already dominates 40 percent of the image sensor market, and Toshiba’s business should help secure that position.