By Megumi Fujikawa
TOKYO--Canon Inc. said Tuesday it plans to fully acquire Axis
AB, a Swedish network video solutions provider, in a tender offer
worth Yen333.7 billion ($2.8 billion).
The decision comes as the Japanese camera maker is struggling
with falling demand for digital cameras and aims to diversify its
operations overseas. The company said it sees network monitoring
systems as a promising new business area.
Canon said it would commence the tender offer for Axis' shares
in early March, as soon as its bid is approved by the Swedish
Financial Supervisory Authority and Nasdaq Stockholm where Axis is
listed.
The Swedish company said that its board of directors has
accepted Canon's bid, which represents a 49.8% premium to the
company's closing share price on Monday.
In 2014, Axis brought in SEK5.45 billion in revenue. The company
specializes in network cameras for the physical security and video
surveillance industry.
Canon said it is examining the effects of the acquisition on its
earnings. In late January, it reported a 6% increase in its net
profit for the October to December period as a weaker yen enhanced
the value of its overseas earnings, outweighing the effect of
weaker demand for digital cameras.
Write to Megumi Fujikawa at megumi.fujikawa@wsj.com
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