Polaris acquires Fujitsu's mobile device business

Fujitsu has confirmed the sale of its mobile phone business to the Polaris Capital Group Co. The company will transfer shares in its subsidiary Fujitsu Connected Technologies, as well as shares in a new company that will take over the mobile device business of Fujitsu Peripherals, to a new company that Polaris will establish. The two companies aim to complete the share transfer by end-March. No financial details related to the transaction have been disclosed. 

Back in February 2016 Fujitsu performed a company split of Fujitsu Connected Technologies as a wholly owned subsidiary handling the mobile device business, thereby clarifying management responsibilities and building a structure that could accelerate management decision-making and pursue thorough streamlining. Now, to accelerate the development of Fujitsu Connected Technologies' next-generation devices geared towards 5G and IoT, as well as the development of new service businesses, Fujitsu said it has made a management decision to transfer shares in Fujitsu Connected Technologies to Polaris.

Regarding Fujitsu Peripherals' company factories that handle the development, manufacture and repair of ubiquitous products including mobile devices, Fujitsu decided to conduct a company split in order to expand its original design manufacturing (ODM) and electronics manufacturing services (EMS) businesses as independent business entities, and to transfer those shares to Polaris.

Polaris believes that these businesses hold the potential for further growth, given the strengths of such brands as the Raku Raku smartphone series. In addition, the building of new businesses that utilize the Raku Raku Community, one of Japan's premier social networks catering to seniors, and other initiatives are also expected to enhance future growth.

Fujitsu will set up a new company called Japan EM Solutions, which will take over Fujitsu Peripherals' mobile device business. In addition, the Raku Raku Community SNS for seniors will be handed over to Fujitsu Connected Technologies. Fujitsu will then transfer shares of both Fujitsu Connected Technologies and Japan EM Solutions to the successor company, and under the new structure will retain for itself 30 percent and 19 percent, respectively, of Fujitsu Connected Technologies and Japan EM Solutions shares.

Even after migration to the new structure, Fujitsu Connected Technologies will continue to offer products under the telecommunications carrier-focused Raku Raku and arrows brands, as well as products in its own in-house brands. Fujitsu Peripherals will conduct ODM business with regard to the development and manufacturing of printers as well as a variety of manufacturing equipment, as a wholly owned subsidiary of Fujitsu.

Fujitsu expects that the impact on its profit for the 2017 fiscal year due to the transfer of shares will reach JPY 30 billion.