Eastman Kodak Co. agreed to work with IBM Corp. to make image sensors for digital cameras and camera phones.
Terms of the multiyear partnership weren't disclosed. IBM will contribute its semiconductor technology to help Kodak develop sensors with better image quality, the companies said.
Kodak Chief Executive Daniel Carp is making acquisitions and forming partnerships to add digital products and services as demand for film declines.
Shares of Rochester, N.Y.-based Kodak rose $1.17, or 3.9%, to $31.17. IBM, based in Armonk, N.Y., fell 25 cents to $86.12. Both trade on the NYSE.