According to multiple reports, Toshiba has granted Canon exclusive negotiating rights for Toshiba Medical Systems Corp, accepting Canon’s offer of $6.2 billion (700 billion yen). The company put the division up for sale after an accounting scandal in which Toshiba admitted it overstated its profits in 2009.
The second round of bidding, whose value exceeded expectations, also included Fujifilm and a coalition of Konica Minolta and European buyout firm Permira. The Toshiba division had previously been valued at no more than 400 billion yen.
The deal allows Canon to expand its medical imaging business beyond x-ray machines and eye examination devices into more lucrative magnetic resonance imaging (MRI) systems and CT scanners. Toshiba, the world’s second-largest manufacturer of CT systems, also produces x-ray and MRI machines, and the company reported a revenue of 405.6 billion yen in the past financial year.
Canon’s offer was reportedly attractive not just because of the finances involved, but because the companies’ lack of overlap will help expedite anti-trust proceedings. For more information, see the Reuters announcement.