Panasonic has announced that the company is set to spin-off its dedicated security systems business division and sell a majority stake in the new company (which will run under the brand name of Panasonic i-PRO Sensing Solutions Co) to the Polaris Capital Group.
Part of Panasonic’s ‘Connected Solutions’ company, the security systems business division was formed 60 years ago to develop security cameras and advanced edge devices. In subsequent years, the division has moved to combine these devices with software such as facial recognition in order to meet the demands of the end user market.
With rising global demand for security and safety solutions, the security-focused division is forecast for growth. Indeed, by establishing the new company and concluding a co-investment with the Polaris Capital Group, Panasonic firmly believes that it can achieve “stable growth” in this market.
Establishing the new company (a decision approved by Panasonic’s Board of Directors on 31 May) represents an astute strategic move.
According to an official press statement, the new company will be able to make particularly good use of Polaris Capital Group’s knowledge and experience borne of numerous investments into other manufacturing organisations and large-scale enterprises. It will build upon the strengths of the existing business division while benefiting from the management expertise and resources of Polaris Capital Group to implement the structure needed to operate as an independent organisation in its own right.
Strengthening its solutions capabilities as a direct result of proactive alliances and future M&A deals, the new company will aim to enhance its revenues at home and globally with a central concentration on the North American market.
With new and next generation products and services, and a strategic growth plan purpose-designed to expand sales of medical camera modules, the new company will build a “solid foundation” as an independent entity with the “potential for a public offering” at some point in the future.