Hitachi Board of Directors votes to sell company's medical division to Fujifilm in approximately $1.6-billion deal.
In a move announced this week, Hitachi’s board of directors voted to sell the company’s diagnostic imaging-related business to Fujifilm.
The approximately $1.6-billion deal will bring together two radiology companies in an effort to launch a new entity that could compete with larger organizations to capture an expanded footprint and market share.
To complete the deal, Hitachi plans to create a holding company for its medical business and transfer all its shares to Fujifilm. July 2020 is the expected completion date.
This move falls in line with Fujifilm’s ongoing efforts to expand its medical systems business endeavors. In its announcement, Fujifilm said it intends to not only apply its proprietary imaging processing and artificial intelligence (AI) technologies to Hitachi’s existing product line-up, but to also leverage Hitachi’s existing global sales network. Fujifilm is set to acquire Hitachi’s CT, MRI, X-ray, and ultrasound imaging operations, as well as its electronic health record business.
Conversely, Hitachi revealed it will concentrate its focus on global rollout of its particle therapy treatment systems, bolster its in-vitro diagnostics systems business, and expand its cell manufacturing solutions. It will also retain control of its IT services, including platforms that link medical and nursing data, and new AI and analytics services.
In addition to having a stable revenue base, Hitachi, in its own announcement, indicated the diagnostic-imaging market has the potential for significant growth as the population continues to age and the incidence of chronic disease increases. The developing world is also seeing a growing need for improved diagnostic health solutions.
According to Fujifilm, this move is intended to have three outcomes, including expanding business in the global market. The company also hopes that, by acquiring Hitachi’s diagnostic imaging business, it will be able to provide one-stop total solutions with CT, MRI, medical IT, in-vitro diagnostics, and endoscopy. Additionally, Fujifilm intends to leverage its image processing technologies already employed in PACS and AI technologies to create new value-added solutions, as well as enhance its existing relationships with medical institutions and medical specialists.