Japan-based Fujifilm has signed an agreement with Hitachi to acquire the latter’s diagnostic imaging business arm to expand its healthcare operations.

Under the terms of the transaction agreement, Hitachi will initially establish a new company and implement an absorption-type company split to facilitate the transaction. Fujifilm will acquire all the outstanding shares of the new company for a purchase price of approximately JPY179bn ($1.64bn).

The transaction is expected to be completed, subject to the fulfilment of certain customary closing conditions and regulatory approvals, in July 2020.

Fujifilm to establish firm business foundation through acquisition

Fujifilm intends to further expand its medical systems business by integrating its advanced image processing and AI technologies with the broad range of portfolio acquired from Hitachi, to provide new solutions to the global market, and play crucial role in improving the quality of medical care.

Through the acquisition of Hitachi’s business, Fujifilm is expected to provide one-stop total solutions, including CT, MRI diagnostics imaging, medical IT, in-vitro diagnostics and endoscopy, for diagnostic imaging, provide advanced solutions by leveraging its own image processing and AI technologies and expand the sales and capability through cross-selling.

Hitachi is engaged in providing solutions that enhance the quality of care by leveraging diagnostic imaging systems, IT and electronic health record technologies.

The diagnostic imaging systems business of the company offers a complete suite of products including CT, MRI, X-ray, and ultrasound systems, with a global footprint.

Fujifilm claimed that it has been investing in prevention, diagnosis, and treatment areas of the healthcare business, to offer cosmetics and supplements, diagnostic imaging systems, medical IT, regenerative medicine and biopharmaceuticals.

Furthermore, it will continue to develop and offer a wide range of products and services to meet the needs in clinical settings, contribute to more effective medical diagnosis and medical care, and improve the people’s health.