NTT Docomo Inc (9437) Acquires 7% Stake In Pioneer Corp (6773) For $50 Million
Japanese telecommunications company NTT Docomo Inc (TYO:9437) is planning to invest 5 billion yen ($50 million) into Pioneer Corp (TYO:6773). Pioneer Corp is a digital entertainment company that is known for making electronics for automotive vehicles. Docomo will gain 7% ownership through the investment. The two companies will work together on a cloud-based intelligent transport system (ITS).
The two of them already have an existing relationship. Pioneer helped bring DoCoMo’s information services into navigation systems. Through this partnership, the companies will create an ITS that uses data from Pioneer’s navigation systems and smartphones on the DoCoMo network. The information that is collected will be used for a series of upcoming services that targets businesses and consumers.
The two companies will also develop and sell car-mounted communication devices that tap into the ITS and data. DoCoMo’s investment in Pioneer is expected to happen before June 28th.
DoCoMo recently enhanced their Internet retail services by acquiring Magaseek for $28 million in March. The company also launched a service that is similar to Google Now. DoCoMo is known for pre-loading applications onto devices. Pioneer will also be able to benefit from this.