Mori Seiki poised to acquire Sony measurement technology business

The pair signed a non-binding memorandum of intent on 11 November, reports businesswire.com. Products within Sony's measuring systems business include digital readout systems (including Magnescale linear encoder technology), digital gauges, Laserscale ultra-precision linear encoders, plus other linear and rotary encoders. The two companies are aiming for a legally binding definitive agreement by the end of December 2009, with the transaction completed by the end of March 2010, says the report. Upon completion, a measurement systems business will be established as a wholly owned subsidiary of Mori Seiki. The two companies are negotiating around a sales price of ¥6 billion (£40 million), subject to adjustment after further due diligence, with the sale accomplished by a combination of "corporate divestiture and other means". The transaction would be subject to the receipt of any necessary government approvals. Mori Seiki has reportedly been purchasing measuring equipment that uses magnetic technology ('Magnescale'), but following acquisition of Sony's measurement systems business will produce the technology in-house, aiming to improve the accuracy of its machine tools and reduce production costs, it is said. In addition, Mori Seiki is said to be planning to drive development of laser measuring technology (Laserscale), with a view to using it to establish a lead in ultra- precision machine tools. Laserscale enables pico-level measuring and has been adopted for position control in state-of-the-art ultra-precision processing equipment. Mori Seiki will also sell measurement technology to others.