Sony Corporation of America has signed a merger agreement with Gracenote in a deal worth approximately $260m.

Gracenote, best known for its music identification service, will continue to operate separately from the Japanese giant.

The digital media services firm will develop new technologies in existing and new areas of operation as a wholly-owned Sony subsidiary. Senior management will remain in place.

Tim Schaaff, senior vice president of software at Sony, said: "Sony sees tremendous growth potential in developing Gracenote as a separately run business unit.

"By broadly embracing Gracenote's platforms, Sony expects to significantly enhance and accelerate its own digital content, service and device initiatives. "