Fujifilm has entered into an agreement with Hitachi to acquire the latter’s diagnostic imaging-related business to further expand its Healthcare business. Prior to the acquisition, Hitachi will establish a company and implement an absorption-type company split whereby the new company will absorb the business. Under the share purchase agreement between Fujifilm and Hitachi, according to a press release, Fujifilm will acquire all the outstanding shares of the new company from Hitachi.

The press release reports that the completion of this acquisition is subject to customary closing conditions and regulatory approvals. The purchase price is expected to be approximately JPY179bn.

By applying its proprietary image processing and artificial intelligence (AI) technologies to Hitachi’s extensive product line up, Fujifilm will further expand its medical systems business and create new values to contribute to improve the quality of medical care. Additionally, the company will provide new values and solutions to the global market by leveraging its strong global sales network.

Since its launch of X-ray system in 1953, the press release states, Hitachi has been providing solutions using diagnostics imaging system, IT and electronic health record to enhance the quality of care and efficiency. Its diagnostic imaging systems business has a strong global presence, providing a comprehensive suite of products including CT, MRI, X-ray, and ultrasound systems. The business not only serves as a stable revenue base, but also shows potential for further growth. Especially with its ultrasound system, Hitachi is one of the global leaders offering its wide range of products with high image quality and excellent operability.

Positioning Healthcare business as one of its important pillars of growth, Fujifilm has been actively investing its management resources in the business to become a comprehensive healthcare company, encompassing “prevention” including cosmetics and supplements, “diagnosis” including diagnostic imaging systems and medical IT, and “treatment” including regenerative medicine and biopharmaceuticals. Medical Systems business, covering “diagnosis” field, is leading the overall healthcare business, offering a wide variety of medical diagnostic products and services with medical IT at its core, ranging from X-ray, endoscopy, ultrasound to in-vitro diagnostics system. In the medical IT field, Fujifilm is leveraging its distinctive image processing heritage and also working to develop AI technologies that have the potential to support diagnostic imaging workflows under the “REiLI” brand.

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.