Canon Acquires Toshiba Medical Systems as it Seeks to Branch Out into New Businesses
Canon Inc. of Tokyo, Japan, reports that its board of directors voted to acquire the shares of Toshiba Medical Systems Corporation, and to make the company a subsidiary, as soon as it obtains necessary regulatory approvals. Canon acquired 134,980,000 shares of Toshiba Medical Systems common stock for approximately 665.5 billion yen.
Canon completed a “shares and other securities” transfer agreement with Toshiba Corporation of Tokyo, Japan, on March 17, 2016. Following that, in order for Toshiba Medical to become a subsidiary, Canon sought clearance from regulatory authorities. It says clearance has been obtained from the authorities in every country and region where it applied.
Toshiba Medical Corporation is located in Otawara-shi, Tochigi-ken in Japan and was established in 1948. It develops, manufacture, sells, and services medical equipment (including diagnostic X-ray systems, medical X-ray CT systems, magnetic resonance imaging systems, diagnostic ultrasound systems, radiation therapy systems, diagnostic nuclear medicine systems, medical sample testing equipment, and information systems for medical equipment). For its fiscal year ending in March 2016, it reported net sales of 291,310 million yen, operating profit of 8,223 million yen, and net income of 16,378 million yen.
Under Phase V of its “Excellent Global Corporation Plan,” a five-year initiative launched in 2016, Canon says it plans to encourage new growth through “a grand strategic transformation,” particularly with new businesses, which it says represents “one of the important strategies to be carried out during this phase.”
The company says its intends to grow its health-care business within the safety and security sector “as a next-generation pillar of growth.”
It says that Toshiba Medical is “one of the leading global companies in the medical equipment industry.” Within the field of medical X-ray computed tomography (CT) systems in particular, Toshiba Medical “is the overwhelming market share leader in Japan and has been steadily increasing its global market share.” Canon says Toshiba Medical is also the only company in the industry with a broad product portfolio that spans diagnostic X-ray systems, magnetic resonance imaging (MRI) systems, diagnostic ultrasound systems, and diagnostic nuclear medicine systems. The company also offers edge medical imaging solutions and in-vitro diagnostics aimed at individualized care.
Canon expects that incorporating Toshiba Medical into the Canon Group will provide the following benefits:
Accelerated Entry into New Fields
By maximizing the application of both Canon and Toshiba Medical’s management resources, Canon says it’ll be able to leverage Toshiba Medical’s core strength in imaging diagnostics, further reinforcing Toshiba Medical’s operational strength in its in-vitro diagnostics business and next-generation medical IT through M&A and other strategic investment, to strengthen Canon’s biomedical business. By making use of Canon’s business portfolio and partnerships, Canon also expects further progress in the field of medical equipment.
Further Improvements in Quality through Shared Production Technology
A collaboration between Canon, with its advanced production technologies, and Toshiba Medical, with its product-development capabilities, is expected to lead to further enhancing Toshiba Medical’s product strength through the provision of precision design and microfabrication technologies, an optimized production system and cooperation aimed at improving quality. This will not only enable the sale of price-competitive products in the market, but also contribute to the development of the health-care business through the circulation of funds generated through enhanced management efficiency applied toward investing in the development of next-generation medical equipment.
Expand Business Domains through the Enhancement R&D
Canon says it possesses proprietary high-speed dynamic X-ray imaging sensor technology, among other imaging devices, along with associated elemental technologies; photoacoustic tomography technology selected by Japan’s national ImPACT program; medical robotic system technologies; and minimally invasive technologies. Through the promotion of joint technology development leveraging these Canon technologies and Toshiba Medical’s R&D, Canon says it’ll be able to globally provide “innovative new products and services in the future.”
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