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In a strategic move to propel its expansion into the burgeoning AI services market, Fujitsu Ltd. is actively pursuing the sale of its $730 million stake in the air-conditioning business, Fujitsu General Ltd.
The Japanese technology icon, amidst the disposal of consumer-oriented businesses, is engaged in negotiations with multiple parties to expedite the sale, according to Chief Executive Officer Takahito Tokita.
The urgency to conclude the deal has intensified against a backdrop of escalating geopolitical and economic uncertainties, impacting company valuations globally. Fujitsu General’s shares experienced a positive shift, gaining as much as 3.4% in late Tokyo trading following Tokita’s comments.
While discussions with potential buyers, including Bain Capital and KKR & Co., have taken place, negotiations have reportedly encountered challenges related to pricing. The 44% stake is currently valued at approximately ¥104 billion ($728 million) based on the latest share price.
Tokita emphasized the critical importance of a swift decision and process, stating, “A quick decision followed by a speedy process is absolutely critical. I’m conscious that the amount of time it has taken so far isn’t ideal.”
Amidst a challenging global mergers and acquisitions landscape, investors are keenly observing Japan, where deal volume involving Japanese companies has surged by 45% compared to the previous year, based on Bloomberg data.
Fujitsu’s restructuring efforts extend beyond the air-conditioning business, with the battery manufacturer FDK Corp. also slated for sale. In a separate transaction, Fujitsu recently agreed to sell its chip packaging subsidiary, Shinko Electric Industries Co., for about $2 billion, following years of negotiations.
This move aligns with Fujitsu’s broader plan to divest non-core businesses and streamline its focus. Fujitsu, once known for its diverse product portfolio ranging from laptops to supercomputers, is actively transforming itself into a technology giant for the digital era. Targeting industries such as manufacturing, the company provides AI services under the Uvance brand, to triple revenue to ¥700 billion ($4.9 billion) by fiscal 2025.
CEO Tokita underscored Fujitsu’s identity as a technology company, stating, “For the past few years, I’ve been telling them we are a technology company. We don’t call ourselves a service company or a solutions company. We even stopped using the term IT company.”
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