News • Takeover from Tokyo

Fujifilm acquires Hitachi’s diagnostic imaging business

Fujifilm Corporation announced that it has entered into an agreement with Hitachi, Ltd. to acquire Hitachi’s Diagnostic Imaging-related Business to further expand its Healthcare business.

fujifilm HQ skyscraper
The Fujifilm Corporation Headquarters in Tokyo

Image source: Rs1421, Tokyo-Midtown-West-01, CC BY-SA 3.0

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, Fujifilm will acquire all the outstanding shares of the New Company from Hitachi. The completion of this acquisition is subject to customary closing conditions and regulatory approvals. The purchase price is expected to be approximately JP¥179bn.

By applying its proprietary image processing and AI technologies to Hitachi’s extensive product lineup, Fujifilm will further expand its Medical Systems business and create new values to contribute to improve the quality of medical care. In addition, 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, 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.

Intended synergies

  1. Providing one-stop total solutions through comprehensive product line-up
    By acquiring Hitachi’s Diagnostic Imaging Systems business, Fujifilm will be able to provide a one-stop total solution that includes CT, MRI diagnostics imaging, medical IT, in-vitro diagnostics and endoscopy. This will dramatically enhance its capability to offer a comprehensive solution to medical institutions. In addition, Fujifilm, a comprehensive healthcare company covering “Diagnosis” and “Treatment”, will be able to create new business that can generate synergies between its Medical Systems business and other businesses in healthcare segment such as pharmaceuticals and regenerative medicine.
  2. Providing innovative solutions by leveraging Fujifilm’s proprietary image processing and AI technologies
    By leveraging Fujifilm’s unique image processing technologies utilized in picture archiving communication systems (PACS) and AI technologies, Fujifilm will be able to provide new value-added solutions. For example, the use of AI technology on CT images can reduce noise and offer better image quality in low-dose examinations. In addition, through its extensive portfolio, Fujifilm will be able to enhance its relationships with medical institutions and medical specialists, and access to high quality diagnostic images and operation data. By leveraging such data, Fujifilm will be able to expand into new areas, including “AI-supported Diagnosis” and “AI-supported Maintenance”.
  3. Expanding sales capability through cross-selling
    Fujifilm will further expand the business in the global market through cross-selling, utilizing the extensive sales channels of both companies.

Fujifilm will continue to develop and provide a wide range of products and services that can meet the needs in clinical settings, contributing to even more efficient medical diagnosis and high quality medical care, leading to the maintenance and improvement of people's health.

Source: Fujifilm


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