That joint venture deal combining NEC Display Solutions with Sharp Corporation is off for at least two months, and it might be mid-fall before the not very inventively named Sharp NEC Display Solutions is a going concern.
NEC and Sharp have mutually agreed to delay the launch date, citing the business disruption brought on by COVID-19. The deal was supposed to conclude and take effect next week.
Says an NEC statement from CEO Tod Bouman:
First announced in March, the completion of the transaction was originally planned for July 1, 2020. However, as a result of the global COVID-19 pandemic, regulatory approvals remain outstanding.
Both companies are moving towards completion of those approvals, but uncontrollable variables have delayed the finalization of the joint venture. The transaction is now expected to be concluded in two to four months from the original July 1, 2020 date.
The Sharp and NEC joint venture, to be called Sharp NEC Display Solutions, will be mutually complimentary and will allow both companies to build upon their strengths and address the visualization needs of their global customers.
Both companies remain committed to the strategic rationale for the proposed joint venture and will provide further updates in due course. In the meantime, it remains business as usual for both Sharp and NEC Display Solutions.
Dave Haynes is the founder and editor of Sixteen:Nine, an online publication that has followed the digital signage industry for some 14 years. Dave does strategic advisory consulting work for many end-users and vendors, and also writes for many of them. He’s based near Halifax, Nova Scotia, on Canada’s east coast.