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Japanese electronics manufacturer Sony has reached an agreement to acquire Swedish equipment supplier Ericsson's (Nasdaq: ERIC) 50% stake in joint venture mobile phone maker Sony Ericsson for 1.05bn euros (US$1.48bn), the companies said in a statement.
The transaction, which has been approved by both companies, is expected to conclude in January 2012, subject to customary closing conditions, including regulatory approvals.
The deal makes the mobile handset business a wholly owned subsidiary of Sony.
As a result of the deal, Sony will consolidate Sony Ericsson from the closing date of the acquisition. The resulting impact on Sony's consolidated results for the fiscal year ending on March 31, 2012, is currently being evaluated.
The transaction gives Sony an opportunity to rapidly integrate smartphones into its array of network-connected consumer electronics devices - including tablets, televisions and personal computers.
The transaction also provides Sony with a broad intellectual property cross-licensing agreement, covering all of its products and services, as well as ownership of five patent families relating to wireless handset technology.