Electronics business Sony is to acquire Ericsson’s share of telecoms joint-venture Sony Ericsson in a deal which will see the Swedish-based business net €1.05 billion (£918 million).

Electronics business Sony is to acquire Ericsson’s share of telecoms joint-venture Sony Ericsson in a deal which will see the Swedish-based business net €1.05 billion (£918 million).

According to Sony, the transaction provides it with a ‘broad’ IP cross-licensing agreement and ownership of five ‘essential’ patent families.

Originally founded in 2001 by the Japanese consumer electronics business and mobile phone company Ericsson, Sony Ericsson’s global base is located in London. The venture has produced products including The Walkman phone and Cyber-shot phone.

In recent years Sony Ericsson has adopted Android-based technology for its smartphones. The telecoms business had a reported 11 per cent market share of the Android phone market at the end of the third quarter of 2011, contributing to 80 per cent of the company’s third quarter sales.

Howard Stringer, chairman and chief executive officer at Sony, says that the deal makes sense for both Sony and Ericsson.

He adds: ‘With a vibrant smartphone business and by gaining access to important strategic IP, our four-screen strategy is in place.’

Sony’s four-screen plan centres round its smartphones, tablet computers, personal computers and televisions.

The deal is set to provide operational efficiencies in engineering, network development and marketing, says Stringer.

President and chief executive officer of Ericsson, Hans Vestberg, says that following its formation ten years ago it was a logical time for Sony to acquire Ericsson’s stake in the company.

He adds: ‘We will now enhance our focus on enabling connectivity for all devices, using R&D and industry leading patent portfolio to realise a truly connected world.’