(Editor's note: For updated official story, click here.)

(Reuters) - A unit of Toshiba Corp is in talks to buy IBM Corp's point-of-sale (POS) terminal business, which includes cash registers, a source familiar with the deal said on Tuesday.

The purchase, which local media put at around $870 million, was aimed at expanding the global reach of Toshiba's half-owned Toshiba Tec Corp, making it the world's largest vendor of POS systems and equipment, the source told Reuters.

The company's board had yet to meet to finalize the deal, the source added.

Toshiba Tec shares gained 7.5 percent in Tokyo to 329 yen, outperforming a flat overall market.

Toshiba Tec would pay 70 billion yen ($870 million) for the IBM business - which counts Wal-Mart and Toys "R" Us as customers - mainly financing the deal with cash reserves and bank loans, the Nikkei business daily reported.

IBM holds the top slot in the global POS terminal market with a share of 22 percent, the Nikkei said, compared with a 7 percent share for the Toshiba subsidiary.

IBM's technology would strengthen Toshiba's cloud computing services that enable stores, shoppers, manufacturers and others to exchange information and offer services, it said.

Register or login for access to this item and much more

All Information Management content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access