Toshiba Corp, the Japanese electronics maker, agreed to buy IBM’s point-of-sale terminal business for about US$850 million.
Toshiba will acquire IBM’s Retail Store Solutions business, the companies said in a joint statement yesterday. The business will be acquired through Toshiba Tec, which is 50 percent owned by Toshiba Corp. The deal is expected to close late in the second quarter or early in the third quarter, subject to regulatory approvals, according to the statement.
The transaction gives Toshiba a business that had revenue of about US$1.15 billion last year and about 1,000 employees globally. Retailers use the point-of-sale systems, which include both hardware and software, to process and record transactions, manage inventory and collect and analyze data including customers’ purchasing trends.
“Toshiba Tec would gain from the purchase, as it can build up its dominance in Japan,” said Mitsuo Shimizu, an analyst at Cosmo Securities Co in Tokyo.
Toshiba Tec rose 6.9 percent, the most in a month, to close at ￥327 in Tokyo trading yesterday after the Nikkei Shimbun reported the deal earlier. Toshiba was unchanged at ￥333.
Armonk, New York-based IBM, the world’s largest computer-services provider, is increasing its focus on software, cloud computing and emerging markets as part of a five-year plan that includes adding US$20 billion in new revenue by 2015.