Fujifilm to buy Hitachi’s diagnostic imaging business for nearly $1.7B
Fujifilm has reached an agreement to acquire the diagnostic imaging-related business of Hitachi for nearly $1.7 billion.
The purchase will enable Fujifilm to expand the reach of its emerging radiology technologies, especially applying its image processing and artificial intelligence technologies to imaging modalities developed and marketed by Hitachi.
According to terms of the deal announced on Wednesday, Hitachi plans to establish a company that will absorb its diagnostic imaging-related lines. Under the share purchase agreement between the deal participants, Fujifilm then will acquire all the outstanding shares of the new company from Hitachi.
The purchase price is expected to be about 179 billion yen, the companies reported. At yen-to-U.S. dollar exchange rates as of December 19, the deal would be valued at $1.65 billion in American dollars. The purchase price is subject to the business’s level of cash, net debt and working capital at the time of the deal’s closing. The closing is expected to occur in July, subject to customary closing conditions and regulatory approvals.
Fujifilm executives say they expect the acquisition will accelerate the growth of its healthcare business. It expects to further expand its medical systems business and create new ways to bring value to the delivery of medical care. It also hopes to bring a wider range of products and solutions to global markets by leveraging its sales force.
Hitachi provides solutions that use diagnostic imaging systems, information technology and electronic health records to improve the quality of care and efficiency. Its diagnostic imaging technology includes computed tomography, MRI, X-ray and ultrasound systems.
By leveraging Fujifilm’s unique image processing technologies utilized in picture archiving communications systems and AI technologies, Fujifilm will be able to provide new, value-added solutions. For example, the use of AI technology on CT images can reduce noise and offer better image quality in low-dose examinations.
Fujifilm executives say that, by acquiring Hitachi’s diagnostic imaging systems business, it will be able to provide a one-stop total solution that includes CT, MRI diagnostics imaging, medical IT, in-vitro diagnostics and endoscopy. This will dramatically enhance its capability to offer a comprehensive solution to medical institutions, they say.
In addition, Fujifilm, a comprehensive healthcare company covering diagnosis and treatment will be able to create new business that can generate synergies between its medical systems business and other businesses in healthcare segment such as pharmaceuticals and regenerative medicine.