Fujifilm Corporation has completed its $1.6 billion acquisition of Hitachi’s diagnostic imaging business.
The deal adds Hitachi’s CT, MR, X-ray and ultrasound systems to Fujifilm’s portfolio, as well as a 5.5% stake it holds in the global medical imaging market. It is expected to put Fujifilm, which holds 2.9%, close to Canon in terms of market share
, which ranks fourth in the sector behind GE, Siemens and Philips, according to the Nikkei Asian Review.
"We are targeting mid-July timeframe to complete the branding transition," Jun Higuchi, president and CEO of Fujifilm Medical Systems U.S.A., Inc. and chairman and CEO of Fujifilm Sonosite, Inc., told HCB News.
In addition to imaging modalities, the deal adds endoscopy, in vitro diagnostic systems and PACS to Fujifilm, including a new portfolio of endoscopic ultrasound PACS. Fujifilm’s advanced image processing technologies and AI solutions will be used alongside these products to create higher-value-added solutions based on medical IT that will enhance quality of care globally.
Discussions about the acquisition date back to late 2019
, when it was priced at more than $1.5 billion. The COVID-19 pandemic, however, delayed moving forward
with the deal, which at that point had risen in price to $1.6 billion.
The acquisition was an absorption-type company split deal
. Hitachi split off its imaging business as a separate company that was absorbed by Fujifilm Healthcare Corporation, which was established to act as a successor to Hitachi. Following the competition of the deal, Fujifilm Healthcare Corporation is now operating as Fujifilm’s wholly-owned subsidiary.
The deal expands the medical equipment business of Fujifilm, which seeks to grow the competitiveness of Hitachi’s imaging diagnostic unit with its expertise in AI and IT. Hitachi plans to shift its focus to the global rollout of its particle therapy systems; strengthen its in-vitro diagnostic systems business for early disease detection; expand its cell manufacturing solutions in areas of regenerative medicine; and continue to offer high-value-added IT services.
"Hitachi's customers and provider partners will not experience a change in the way in which they are serviced," said Higuchi.