Samsung Electronics to join with Samsung Digital Imaging in corporate realignment

SEOUL, Korea (AVING) — <Visual News> Samsung Electronics today announced it is seeking to merge with Samsung Digital Imaging as part of a move to become a global leader in the digital camera business. The merger, expected to be signed on Jan. 22, 2010, will go into effect from April 1, 2010, once the transaction is approved at the shareholders meeting, according to a resolution made after a board of directors meeting on Dec. 15.

Under the agreement, the Samsung Digital Imaging will be absorbed into Samsung Electronics, as a business unit responsible for digital cameras, camcorders, and optical devices. The merger ratio of the two companies is to be Samsung Electronics: Samsung Digital Imaging = 1:0.0577663.

The union will enable the digital imaging business to utilize and maximize the key components, system and software technology, and design competitiveness of Samsung Electronics. By maximizing Samsung Electronics’ global marketing capabilities and sales network, the company aims to become a top-tier brand in digital cameras by 2012, with a market share of 20 percent and sales of 5 trillion won annually.

Samsung Electronics can also benefit by maximizing Samsung Digital Imaging’s optical technology, applying the technology to other businesses such as camera phones, and printer businesses.