Canon to sell all of its digital camera business to Chinese company for $1.1 billion

By David R. McWhorter and Mark B. ShiffmanBloombergNewsAugust 18, 2018 08:31:52A digital camera maker is betting big on a Chinese e-commerce company that hopes to tap into its growing popularity in emerging markets and the rising costs of buying and selling goods online.

The acquisition by Canon Inc. is the largest in Canon’s history, said Michael N. Oren, a Canon spokesman.

The deal is worth about $1 billion, with revenue from digital cameras and lenses and equipment expected to increase about 50 percent, he said.

Novo, a Chinese-based company, is the second-largest digital camera manufacturer after Nikon Corp.

NovaOptics, a California company, will also buy Canon, Novell Inc. and Sigma Microelectronics, Oren said.

It will keep about half of its headquarters in San Jose, California, the company said.

The deal, which is not subject to regulatory approval, follows the consolidation of a slew of digital camera makers by Lenovo Group Holding Ltd.

of China.

The combined company will sell more than 200 million cameras and 35 million lenses annually, according to a statement.

Canon will retain a small percentage of the company’s revenue, the statement said.