Toshiba sells its PC unit to Sharp in $36 million deal
It could signal Sharp's return to the PC market.
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The deal marks the end of an era for Toshiba.
Toshiba is selling its personal PC business to Sharp.
The roughly $36 million deal, announced Tuesday, includes the issuance of $1.8 billion in new shares by Sharp to buy back stock from banks, ZDNet reports.
Sharp, which was acquired by Apple supplier Foxconn in 2016 for around $3.5 billion, will have an 80.1 percent stake in the business, according to a release. The company closed its PC operations in 2010 but appears to be returning to the PC market.
For Toshiba, on the other hand, it's the end of an era. The company released the world's first laptop PC in 1985, but is now pulling back from most consumer businesses.
As part of the acquisition, Toshiba will transfer 80.1 percent of its outstanding shares to Sharp. Under Foxconn, Sharp could potentially manufacture devices at a lower price.
Before the deal with Sharp, Toshiba transferred its PC business to Toshiba Client Solutions (TCS) in April 2016 as part of a structural reform.
"Toshiba has determined that the best way to strengthen TCS, increase its corporate value, and also to secure global competitiveness and continued development of the business, is to select Sharp as its partner," Toshiba said in the release.
After the deal closes on Oct. 1, Toshiba will still provide brand licensing for PC products as well as equipment manufactured, designed and sold by TCS.