Sharp has accepted a $4.3 billion takeover bid by Taiwanese multinational Foxconn.
The announcement came as Sharp’s board completed a two-day meeting to discuss competing takeover offers.
Foxconn assembles most of the world’s iPhones. Sharp is one of Japan’s oldest technology companies.
It is the first foreign takeover of a major Japanese electronics firm in a historically insular technology sector.
Founded in 1912, innovations by Sharp include a mechanical pencil in 1915 and pioneering developments in TV engineering.
Although recent years have seen a downturn in Sharp’s fortunes with heavy debts, the company continued to be a leader in liquid display technology, a key asset for Foxconn.
Shares in Sharp, which employs more than 50,000 globally, will be issued to Hon Hai Precision Industry Company, also known as Foxconn Technology Group.
Sharp’s shares were halted from trading ahead the announcement. They later reopened and closed down by nearly 15%.
Earlier this month, as it was considering several takeover offers, Sharp posted a bigger-than-expected net loss of $918 million for the April-to-December 2015 period.
In 2012, Sharp came close to entering bankruptcy. It has struggled with heavy debts and has been through two major bailouts in the last four years.
Foxconn first offered to invest in Sharp in 2012, but talks collapsed.