As part of the agreement, Sony will invest 50 billion Japanese Yen, which equates to approximately $640 million USD, for an 11 percent stake in Olympus.
The alliance is expected to allow the two companies to combine Olympus' lens and optical technologies, as well as its brand and research and development expertise, with Sony's range of technologies, including digital imaging technologies and apply them in the rapidly growing medical market, according to a press release issued by the Tokyo-based Olympus.
The companies said that they aim to strengthen their presence in the market for medical products such as surgical endoscopes and video microscopes through the development of new medical products and businesses. In addition, Olympus and Sony aim to establish a systems integration business that offers systems for operating rooms and other medical arenas.
The company will focus on development of surgical endoscopes with 4k (or higher) resolution or 3D function, and related systems and integrated medical and video equipment for operating rooms and other medical arenas.
In connection with the business alliance, Olympus and Sony have entered into a capital alliance agreement, under which Olympus will issue new shares to Sony through a third-party allotment.
The companies have agreed to establish a medical business venture company by the end of December, subject to customary closing conditions, including the receipt of any necessary regulatory approvals. The medical business venture will be incorporated as a corporation in Japan and include four directors nominated by Sony and three by Olympus.