Hitachi Kokusai Electric Inc. has reached an agreement with the Brazilian broadcast transmitter manufacturer Linear Equipamentos Eletrônicos S/A to acquire a majority of Linear's shares by early October 2011.

Hitachi has purposed the investment towards developing a terrestrial digital broadcasting equipment business in South America. Negotiations are proceeding, with both parties targeting the conclusion of a final agreement by September 30.

Hitachi Kokusai has been conducting market surveys and analysis, for the purpose of further developing its global business, focusing on the countries of South America where the Japanese broadcasting standard is being adopted and used, with regard to its terrestrial digital broadcasting equipment business for video and wireless networks.

Based on this research, Hitachi Kokusai has been negotiating with Linear, the largest Brazilian broadcast transmitter manufacturer, to develop a joint business as a means of entering the broadcast transmitter market in Brazil, which is undergoing rapid economic growth.

Linear has reliable technologies related to the design and manufacturing of both analog and digital transmitters, and with a full product lineup, has a solid sales record in the Brazilian domestic market. Linear is also looking to expand its business to other countries in South America and to Africa.

By supplementing Linear's lineup with the digital technologies, design and manufacturing expertise, and reliability that Hitachi Kokusai has developed in the Japanese domestic market, the two companies will be able to supply broadcasters in Brazil and other countries with high-quality, competitively priced transmitters.

Brazil's full conversion to terrestrial digital broadcasting is scheduled to take place in 2016, but with the FIFA World Cup scheduled to be held in Brazil in 2014 and the Summer Olympics scheduled to be held in Rio de Janeiro in 2016, this basic agreement was reached for the timely supply to the market of high value-added products and to quickly build a structure that can comprehensively supply cameras, digital microwave link, and other broadcasting equipment.

From its formation in 1977, Linear has developed a reputation as a reliable provider of advanced TV broadcasting and signal transport equipment. In Latin America, Linear has been the prominent manufacturer of TV Transmitters in countries ranging from Mexico to Argentina, including Brazil, for decades.

Linear’s line of equipment includes VHF and UHF TV transmitters from 1W to 20,000W, exciters, encoders, gap-fillers, as well as analog and digital microwave systems. Collectively, the company has manufactured and installed nearly 30,000 forms of equipment in more than 40 countries worldwide.

27th August 2011