Today (27 October), Sony agreed to buy 50% of the company for EUR1.1bn (£964m). Rumours of the move have been circulating for some time.
Howard Stringer, Sony's chairman and chief executive, said: "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."
Along with taking control of the mobile phone subsidiary, Sony will acquire five patents that are key to making phones and a licensing agreement on any other intellectual property.
The joint venture was set up in 2001 and initially proved fruitful for both parties. But it has lost out in recent times in the smartphone market.
The move signifies Ericsson's exit from the mobile handset manufacturing business.
The deal is expected to be fully rubber stamped by January 2012.
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