STOCKHOLM (

TheStreet

) -

Sony

(SNE) - Get Report

will acquire

Ericsson's

(ERIC) - Get Report

50% stake in their Sony Ericsson mobile phone venture for ¿1.05 billion ($1.47 billion) in cash.

The mobile handset business will become a subsidiary of Sony. The deal allows Sony to integrate smartphones into its line-up of network-connected consumer electronics devices.

The deal also gives Sony a broad intellectual property cross-licensing agreement covering all products and services of Sony as well as ownership of five patent families relating to wireless handset technology, Ericsson said in a statement Thursday.

"This acquisition makes sense for Sony and Ericsson, and it will make the difference for consumers, who want to connect with content wherever they are, whenever they want," said Sony Chairman and CEO Sir Howard Stringer. "With a vibrant smartphone business and by gaining access to important strategic IP, notably a broad cross-license agreement, our four-screen strategy is in place. We can more rapidly and more widely offer consumers smartphones, laptops, tablets and televisions that seamlessly connect with one another and open up new worlds of online entertainment."

The transaction is expected to close in January.

-- Written by Joseph Woelfel

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Joseph Woelfel

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