Seiko watches: Japanese company gets $1.4 billion deal
The Japanese company Seiko announced Friday that it has agreed to pay $1 billion to buy the US-based watchmaker for $1,460 per share.
The deal is valued at $2.6 billion, and Seiko CEO Junichi Masuda will serve as CEO of the combined company.
The news follows a string of major deals that have seen Japanese companies buy American companies for hefty sums.
Masuda, who also heads the company’s luxury watch business, said Friday that the combined Seiko and the US company will help the company grow its global footprint, expand its watch business and create more jobs.
The combined company will be based in California and will be led by Masuda.
The move comes after Masuda last month took a more active role in the Japanese market, with Seiko buying out the $5.6-billion investment from the Chinese company CSC Technologies.
The $1-billion deal is Seiko’s largest outside-the-U.S. purchase to date.
The Seiko purchase, which will be announced later this month, is the latest in a string that has seen companies in China, the United Kingdom, India and the United States buy up major American companies and then invest their fortunes overseas.
Earlier this month the Japanese company announced a $2 billion acquisition of US watchmaker Fossil, the latest acquisition to hit the market.