ORIX Corporation (ORIX) announced that it has entered into a capital partnership agreement with Panasonic Connect, a subsidiary of Panasonic Holdings Corporation, for its professional projector and professional display businesses.
The related businesses will be carved-out from Panasonic Connect and certain parts of Panasonic Holdings to establish a new company. The new company will be 80% owned by ORIX and 20% by Panasonic Connect, and the two parties will jointly operate the business. Subject to certain closing conditions, the new company is anticipated to start operations on April 1st, 2025.
Panasonic Connect's professional projector business has advanced technological capabilities to achieve high brightness and image quality based on many years of research and development. It holds the top market share globally in its flagship product, high-brightness projectors, which are used in projection mapping, live music, theme parks, museums, etc., including in the opening and closing ceremonies of the Tokyo 2020 Olympic and Paralympic Games.
The business is truly global, with approximately 90% of sales in markets outside of Japan and expects sustainable growth in the future as the live entertainment market continues to expand.
ORIX aims to enhance global business value by leveraging the investment capabilities as well as Panasonic Connect's advanced technological capabilities and a deep customer base. As a dedicated operator of both businesses, the new company will continue to invest in management resources and build a highly competitive business organization, evolve and expand its global customer network, expand into emerging markets, and enhance customer support services, with the aim of achieving further business growth.
ORIX has accumulated a considerable track-record in the private equity business, mainly focusing on business succession transactions to date. ORIX also sees significant investment opportunities in carve-outs and other public companies, reflecting changes in public stock markets and structural reforms in Japanese companies. Through these transactions, ORIX aims to contribute to Japan's industrial development.