Speculation gave way to certainty when Fujifilm announced Wednesday, Dec. 18, that it has entered into a formal agreement to purchase Hitachi’s diagnostic imaging line of offerings for more than $1.6 billion (USD).
The Tokyo-based camera and photocopier giant’s move would make it one of the largest imaging companies in the world, with scale to rival the big four—Siemens, GE Healthcare, Philips and Canon.
Hitachi has a longstanding stake in the diagnostics industry, launching its first x-ray system in 1953, and since then building a “strong global presence,” Fujifilm noted in its announcement. Adding an established player’s imaging portfolio would lend Fujifilm a “stable revenue base” with “potential for further growth,” company officials believe.
Fujifilm has invested heavily in its healthcare business line in recent years—keying in on prevention, diagnosis and treatment—with imaging systems leading the charge, and a focus on health IT at the core of its strategy.
“Through this acquisition, Fujifilm will establish a solid business foundation to become a world’s leading healthcare company and play a leading role in improving the quality of medical care,” wrote President and Chief Operating Officer Kenji Sukeno.
In its own announcement, Tokyo-based Hitachi said it expects to see steady growth in the imaging lines as the population continues to age and require greater levels of care. Scale expansion is becoming increasingly crucial for the line, however, and will be necessary to counter consolidation and “intensifying global competition.” Officials believe the sale will help strengthen its competitiveness and achieve further growth, given Fujifilm’s “highly complementary sales channels and outstanding technological capabilities” in image processing.
The acquisition is expected to close in July 2020, subject to regulatory approval. The nearly $1.64 billion purchase price—higher than the figure media outlets reported Tuesday, citing anonymous sources—is also subject to Fujifilm’s cash levels, net debt and working capital at the time of closing.
Marty Stempniak has covered healthcare since 2012, with his byline appearing in the American Hospital Association's member magazine, Modern Healthcare and McKnight's. Prior to that, he wrote about village government and local business for his hometown newspaper in Oak Park, Illinois. He won a Peter Lisagor and Gold EXCEL awards in 2017 for his coverage of the opioid epidemic.