Royal Philips Electronics has signed a deal to sell its consumer-oriented lifestyle entertainment division to Funai Electric.
According to Philips' announcement today, Funai is paying 150 million euros ($202 million) for the division, which includes audio, visual, multimedia, and accessories. Funai will also license the Philips brand for five-and-a-half years.
Philips' lifestyle entertainment division is made up of a wide range of consumer products, including the company's home speakers, DVD players, and headphones. Although those products will still be available with Philips branding, Osaka, Japan-based Funai will be developing them.
According to Philips CEO Frans van Houten, the move is designed to refocus Philips' consumer operations around health and well-being. He also reassured customers about his company's consumer-focused future.
"I am confident that today's agreement with Funai, our partner for over 25 years, will create a promising future for Philips Audio, Video and Entertainment, and continuity for our customers," he said.
Philips expects the deal to close in the second half of 2013.