Toronto based e-reader manufacturer and e-book retailer Kobo has confirmed that it looks set to be taken over by Japanese company Rakuten Inc. in a deal that is said to be worth as much as $315 million USD. It looks likely that the Indigo Books & Music owned Kobo will use the knowledge and influence of Rakuten to help them expand into new territories, boosting the brand name globally as they go.
Kobo chief executive Michael Serbinis says that the deal will help to drive innovation on behalf of the company in the months and years ahead.
"What this translates into is far more innovation and more affordable products given that our scale is only going to grow.We are probably going to double the number of jobs in Canada over the next 12 to 18 months."
It looks as though the company will be given plenty of autonomy from its parent, with headquarters set to remain in Toronto for now.
The deal is good news for shareholders in Kobo, who saw their investments increase $2.39 following the announcement, leaving shares at $9.12.