Panasonic Connect has today (July 31) announced that it has reached an agreement on a strategic capital partnership with ORIX Corporation, the Japanese financial services group, in regard to the company’s projector business and related operations. The two companies plan to establish a new company to operate the business aiming for continued growth. This decision was made today at the board of directors meeting of Panasonic Holdings Corporation.
This capital partnership is scheduled to be executed on April 1, 2025, subject to certain preconditions such as obtaining approval from relevant authorities.
Together with ORIX, Panasonic Connect will establish a new company based on its Media Entertainment Business Division (MEBD). Regarding the new company, ORIX will hold 80 percent of the shares, and Panasonic Connect will hold 20 per cent.
After the capital partnership, target products will continue to carry the Panasonic brand, and the new company will also use the Panasonic name for the time being.
Since the commercialisation of its first cathode ray tube (CRT) projector in 1975, Panasonic’s commercial projector and display business has launched a wide range of products utilising proprietary device control technology.
However, in a statement released today, Panasonic acknowledged changes in the competitive market that necessitated a change in strategy.
The statement said: “In this market the importance of integrating software along with advanced hardware has increased, and significant changes in the competitive environment have arisen due to the emergence of applied technologies and the demand for immersive experiences. In order to achieve in-organic growth and further market expansion going forward, the company has deemed that it will be necessary to strengthen operations and make continual investments.”
The statement continued: “In light of these circumstances, Panasonic Connect and ORIX have determined that further growth can be achieved by leveraging the former’s technological expertise and customer base, along with the investment power ORIX holds and the knowledge and experience cultivated through business investments in numerous companies, including manufacturing and large corporations.”
ORIX engages in diverse financial services and is “committed to business operations with a medium- to long-term perspective”, according to Panasonic.
The statement explained the reasoning behind the financial partnership. “Through this capital partnership, the company aims to leverage ORIX’s wealth of business investment experience and pursue strategies for in-organic growth, along with continuous investment for technological development in hardware technology and the construction and execution of strategic alliances on a global scale.”
In April 2025, the new company will be established out of the Media Entertainment Business Division of Panasonic Connect. Additionally, overseas subsidiaries will be established from the sales functions of that division in North America, Europe, China, Australia, Singapore and other regions to be operated by the new company. In Japan, Panasonic Connect’s Gemba Solutions company will continue to handle domestic sales.
