Japan-based Canon has agreed to acquire Toshiba Medical Systems (TMSC) for about JPY665.5bn ($5.94bn).
The companies have signed a share transfer agreement to make TMSC as Canon’s subsidiary.
Earlier this month, Canon secured exclusive negotiation rights to acquire TMSC as Toshiba is in the process of restructuring its operations following an accounting scandal.
The deal is subject to clearance from the authorities regulating competition law in key countries.
TMSC is involved in the development and marketing of medical equipment, including diagnostic X-ray systems, medical X-ray CT systems and magnetic resonance imaging systems.
The company also produces diagnostic ultrasound systems, radiation therapy systems, diagnostic nuclear medicine systems, medical sample testing equipment, and information systems for medical equipment.
Canon said it can leverage TMSC’s core strength in imaging diagnostics by further reinforcing its operational strength in the in-vitro diagnostics business and next-generation medical IT through M&A and other strategic investment.
The deal is expected to expand the operations of Canon’s biomedical business.
Canon manufactures imaging and optical products, including cameras, camcorders, photocopiers, steppers, computer printers and medical equipment.
Image: Canon has signed agreement to acquire Toshiba Medical Systems. Photo: courtesy of adamr / FreeDigitalPhotos.net.