Japanese company Ricoh, which specializes in the production of printing equipment and document management solutions, plans to sell its semiconductor division Ricoh Electronic Devices for more than 10 billion yen (88.7 million dollars) in order to get rid of non-core assets and focus on growing directions.

According to Nikkei, as preferred buyer Ricoh chose a consortium of investors led by the Development Bank of Japan (DBJ) and the Japanese manufacturer of electronics and brake systems Nisshinbo Holdings. Now, Ricoh and Nisshinbo are about to negotiate the details of the deal, affecting nearly 600 employees of the absorbed unit.

In 2014, based on the semiconductor assets of Ricoh, a separate company Ricoh Electronic Device. The subsidiary company specializes in power management controllers, which, among other things, are used in smartphones to protect batteries.

Business Ricoh in the field of printer technology is experiencing difficulties in connection with the transition of companies to digital workflow. In order to survive the difficult period, the company consolidates production facilities, reformes the sales structure and organization of service, and also gets rid of third-party assets that are not related to the core business. As part of the company's measures, Ricoh expects to save more than 100 billion yen ($ 885 million) in a three-year period until March 2020.

Also, Ricoh seeks to diversify its business and develops a growth strategy in such areas as commercial printing and healthcare. However, other Japanese vendors are also developing a promising medical business. Previously, Canon bought for 665.5 billion yen a Toshiba Medical Systems specializing in diagnostic imaging equipment, and Fujifilm Holdings acquired for 155 billion yen a manufacturer of reagents Wako Pure Chemical Industries.

Apparently, with the help of the transaction, Ricoh expects to receive additional funds necessary to compete with more secured rivals, observers say..

Earlier, in April 2017, Nikkei reported that Ricoh was cutting its loss-making business in the production of personal digital cameras and even considering the possibility of a complete abandonment of this direction. However, the company denied rumors about the end of production of consumer digital cameras.