For many generations, Panasonic Holdings has been a leading global technology innovator and while its business model has shifted in the last few years, it still holds much respect around the world. Now we’ve learned that the company has decided to sell off its high-end projector unit in order to refocus its resources on digital supply chain systems.
See more on this consequential decision by Panasonic to drop projectors
Like Sony, for many years Panasonic had a creation-to-consumption strategy in high-tech A/V systems. One of only a few companies around the world with advanced technology professional gear as well as a huge consumer technology business, they once roamed the earth with a handful of dominant giants that directly influenced the direction of the entire technology industry.
Now, the Nikkei has discovered that the company has made the strategic decision – at the highest levels of management – to exit the projector business to focus on another key market – supply chain solutions. Panasonic Connect is the division of the company that designs, manufactures, and distributes large, high-end, major venue projectors used in history-making events around the world, like the Olympics.
One of the Biggest Names in Large-Venue Projectors
The company is thought to be quite competitive in this business, as the Nikkei noted, “Panasonic Connect is one of the world’s biggest names in high-end, large-venue projectors…”
Panasonic says it has already begun discussions with potential buyers and expects to make a decision within the next few weeks – perhaps by the end of June. Business experts in Japan are estimating the unit could bring in as much as ¥80 billion (about $510 million). The Nikkei says the company is planning to use the money “…to fill ‘growth’ war chest.”
A New Supply Chain Focus
In 2021, Panasonic acquired Blue Yonder for $7 billion. Blue Yonder is a cloud-based supply chain transaction processing center that is already one of the largest in the world. According to its website, Blue Yonder processes 28,900 supply chain transactions every second…2.5 billion transactions per day. It is believed that Panasonic is raising capital to acquire yet another supply chain property and grow its share of this massive business.
It is likely for this reason, the company has decided to dispose of the projector business to pursue further growth in the supply chain systems market.
Private Equity is a Possible Buyer
In the report out of Japan, one of the rumored potential buyers for its projector business is Orix, which is known in Japan as a financial services group. Similar to a private equity company, Orix has “at least one international investment fund” and it may be interested in buying Panasonic’s projector business.
For Panasonic Holdings, selling off the projector business is its largest divestiture since it sold Panasonic Automotive Systems to the well-known U.S. PE company, Apollo Global Management last year. Panasonic management has previously announced a three-pronged growth strategy with a focus on electric vehicle batteries, heat pumps, and supply chain management.
Learn More…
Learn more about Panasonic projectors by visiting na.panasonic.com/us/audio-visual-solutions/projectors/.
See more on what Blue Yonder is all about at blueyonder.com.
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