Fujifilm to Acquire Hitachi’s Diagnostic Imaging Business for $1.63 Billion to Accelerate Healthcare Growth

VCBeat (WeChat ID: vcbeat) learned from foreign media reports that on December 18, 2019, Japanese medical imaging company Fujifilm announced it had reached an agreement with Hitachi to acquire Hitachi’s diagnostic imaging-related business for JPY 179 billion (approximately USD 1.63 billion).

The acquisition is expected to be completed in July 2020, subject to approval from the relevant regulatory authorities.

Hitachi and Fujifilm are both giants in the medical imaging industry. Hitachi began its diagnostic imaging business in 1953 with the launch of its first X-ray system. Last year (2018), the company’s real-time image gating system received FDA 510(k) clearance. Fujifilm primarily operates in healthcare sectors such as medical IT, in vitro diagnostics, and endoscopy. Its diagnostic imaging systems include CT, MRI, X-ray, and ultrasound equipment. Currently, Fujifilm’s diagnostic imaging systems leverage its image processing and artificial intelligence technologies to provide hospitals and clinics with new imaging solutions, such as AI-assisted medical diagnosis and system maintenance services.

Fujifilm’s recent acquisition of Hitachi’s diagnostic imaging business is the latest example of multinational conglomerates reshaping their healthcare portfolios. Also in Japan, Canon acquired Toshiba Medical Systems Corporation for approximately ¥655.5 billion in 2016. In 2019, General Electric spun off its biopharmaceutical business to Danaher in a deal valued at around $21 billion, while 3M acquired wound-care manufacturer Acelity for $6.7 billion.

Hitachi stated that after divesting its diagnostic imaging-related business assets, the company will shift its strategic focus to the global expansion of nanoparticle-based immunotherapy systems, in vitro diagnostic systems, regenerative medicine, and healthcare and nursing IT platforms. Earlier this year, the Anderson Cancer Center in Texas conducted a $159 million proton therapy expansion study using Hitachi equipment.

Following the completion of this acquisition, Fujifilm will also introduce Hitachi’s new CT, MRI, and ultrasound equipment to further expand its healthcare business, thereby gaining a competitive advantage in the fiercely global diagnostic imaging market against medical imaging giants such as GE, Siemens, Philips, and Canon. According to Nikkei News, GE, Siemens, and Philips each hold more than 20% of the global radiology equipment market, while Canon holds a 9.5% share. The acquisition of Hitachi’s diagnostic imaging business will place Fujifilm just behind Canon with an 8.4% market share.

Fujifilm President Kenji Sukeno stated, “Fujifilm will leverage the extensive sales channels of both companies to further expand its global market presence through cross-selling. In addition, Fujifilm will continue to develop and provide a broad range of products and services that meet the needs of clinical settings, contributing to more effective medical diagnostics and high-quality medical care, thereby safeguarding and improving people’s health.”

(Compiled by Wang Fang)