Japan's Toshiba Corporation has agreed to buy IBM's point-of-sale (POS) business in a $850m (£534m) deal.
POS systems are used by retailers to process transactions, manage inventories and analyze sales and consumer data.
The demand for these has been rising as firms look for better ways retain customers amid growing competition.
The deal will make Toshiba the world's biggest POS system provider.
"Toshiba Tec enjoys a strong presence in retail store solutions in Asia-Pacific, including Japan, and we are confident that this acquisition will support expansion in North America, Europe and the emerging economies," said Norio Sasaki, President and CEO, Toshiba.
"I also expect this significant step to support innovation and the creation of new business opportunities for Toshiba Group."
IBM's retail store solutions business had revenues of $1.15bn in 2011 and employs approximately 1,000 workers worldwide.