Japanese office equipment and camera maker Ricoh on Friday said it would acquire Hoya Corporation's Pentax digital camera business in a deal effective October.
In a statement, the companies said Ricoh would use the Pentax brand name for its digital camera products, while Hoya would continue to use the Pentax brand for products such as endoscopes. They did not provide a value for the deal.
The Nikkei business daily reported that the deal was worth an estimated 10 billion yen ($124 million).
The acquisition is part of Ricoh's efforts to bolster its consumer products business, while Hoya is looking to streamline its business to focus on medical products.
Companies face fierce price competition in the compact digital camera market, which is placing downward pressure on midsize makers' profits.
The move by Ricoh could trigger a major industry realignment, the Nikkei said.