NEC and Sharp announced a joint venture to merge their display businesses

Tokyo, March 25, 2020 - NEC (NEC, TSE: 6701) and Sharp (TSE: 6753) agreed to form a joint venture by merging NEC's subsidiary NEC Display Solutions, Ltd. (NDS).

NDS and sharp are two of the market leaders in the production and development of visual solutions.Sharp's joint venture with NEC will allow both companies to leverage their strengths and meet the visualization needs of their customers around the world.

NDS is recognized as the world's leading provider of visual technology and digital signage solutions for a variety of markets.With a comprehensive and solution-oriented product portfolio and a reputation as a provider of high-quality displays, NDS has a strong global presence and a large number of global customers.

Like NDS, sharp is a global developer of innovative commercial products, including advanced technologies such as professional and commercial displays and the next generation of 8K ultra-high definition displays.

Hisatsugu Nakatani, President of NEC, said: "NEC offers one of the industry's widest portfolio of visual solutions and is recognized as a trusted consultant and overall solution provider with a consultation-led approach to sales.The joint venture between sharp and NEC will deliver greater value and benefits to customers and partners by expanding our state-of-the-art product portfolio and a range of professional services.Sharp and NEC are taking the same strategic approach to the future of vision solutions, with a focus on achieving superior customer satisfaction through high-quality products, superior sales leadership, and committed relationships.

"The combination of sharp and NDS international strengths is complementary," said Fujikazu Nakayama, senior executive director and President of sharp's business solutions division.We hope that this agreement will generate broad synergies, including economies of scale and business expansion in new categories, including the 8K + 5G ecosystem.Sharp is confident that the joint venture between NDS and NEC will contribute to our business growth by strengthening our B2B business and expanding sales."

Under the terms of the deal, NEC will transfer 66 per cent of NDS ownership to sharp and retain a 34 per cent stake.The joint venture will continue to provide NEC brand products.NEC will also continue to sell joint venture products and solutions to customers around the world.The transfer is scheduled to be completed by July 1, 2020.