Fujifilm enhances its image

At ¥179bn ($1.6bn), Fujifilm’s bid for Hitachi’s imaging unit is the biggest all-Japanese healthcare transaction since Canon bought Toshiba’s medical systems division for $6bn in 2016. Hitachi’s imaging business mainly focuses on MRI and CT systems as well as diagnostic ultrasound machines, which should complement Fujifilm’s strength in more basic devices such as X-ray systems and film, endoscopes and medical IT. This varied offering will be more appealing to medical institutions, Fujifilm says. Fujifilm wants to add its in-house artificial intelligence software to the imaging machines, and the group will be able to use its new MRI and CT capabilities to aid its developmental efforts in pharmaceuticals and regenerative medicine. The acquisition could also unlock the potential for alliances, particularly in the area of healthcare IT. Hitachi, meanwhile, will be free to redouble its sales efforts for its proton beam technology, used to kill cancer patients’ tumours. Buying Hitachi’s imaging business will increase Fujifilm’s imaging revenue by about 50%, but this is not enough to move it up the rankings of imaging companies: when the deal closes next year, Fujifilm will remain in its current fifth place, behind Canon.