Japan’s Olympus on June 24 announced the decision to end its 84-year history of making camera by selling off the camera division. The photo imaging giant has been struggling for years as consumers shift increasingly to sophisticated smartphone cameras for their needs of capturing images "Despite all such efforts, Olympus's Imaging business recorded operating losses for three consecutive fiscal years up to the term ended in March 2020," the company said, adding that it has signed a memo of understanding to transfer the camera division to investment fund Japan Industrial Partners. The sale is expected to be completed by the end of September.

The following is part of the announcement:

Olympus Corporation ("Olympus") and Japan Industrial Partners, Inc. ("JIP") hereby announce that, today, the parties signed a memorandum of understanding to carveout Olympus’s Imaging business to a new company (“NewCo”) and subsequently transfer its shares to a fund managed, operated or otherwise handled by JIP (the

"Transaction").

After the due diligence and further discussions and negotiations, the parties are aiming to sign a legallybinding definitive agreement for the Transaction (the "Definitive Agreement") by September 30, 2020. We will promptly make further announcement if any matters relating to the Transaction that needs further announcement

occur.

Olympus has implemented measures to cope with the extremely severe digital camera market, due to, amongst others, rapid market shrink caused by the evolution of smartphones; Olympus has improved the cost structure by restructuring the manufacturing bases and focusing on high-value-added interchangeable lenses, aiming to rectify the earning structure to those that may continue generating profit even as sales dwindles. Despite all such efforts, Olympus’s Imaging business recorded operating losses for 3 consecutive fiscal years up to the term ended in March 2020.

Under such circumstances, Olympus considers that, by carving-out the Imaging business and by operating the business with JIP, the Imaging business’s corporate structure may become more compact, efficient and agile and it is the most appropriate way to realize its self-sustainable and continuous growth and to bring values to the users of our products as well as our employees working in the Imaging business.

Olympus therefore has decided to sign the memorandum of understanding for the Transaction.

Although this is a pitiful decision, today, with the rapid development of smartphones, the competition between cameras and smartphones will become increasingly fierce.

But in any case, HDRiG will continue to provide professional camera accessories for those who love cameras and photography around the world. Whether it is camera cage accessories or shoulder rig kit, we are always here.