Sony and Olympus have entered a "business and capital alliance," with Sony buying 50 billion yen ($644 million) worth of Olympus' shares, and gaining a 51% stake in a new joint venture focusing on medical business, Sony has announced.
Under the terms of the agreement [PDF link], Olympus will issue 34,387,900 common shares to Sony, ultimately representing 11.28% of Olympus' total shares.
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The new joint venture between the two companies doesn't yet have a name and it's currently called simply "medical business venture." It should be established by the end of December 2012 and combine Sony's research with Olympus' strong position in the surgical endoscope market.
The agreement between the two companies comes after a tough period for Olympus, which started with the discovery that the company covered up $1.65 billion in losses.
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This story originally published on Mashable here.