The world’s largest camera maker Canon Inc. announced a 23.6 billion-krona ($2.8 billion) cash bid to acquire Sweden’s Axis Communications AB.
The Japanese corporation offered 340 kronor per share, almost 50% more than the stock’s closing price Monday in Stockholm. Canon Inc. is making its largest ever acquisition in an attempt to diversify its production of printers and computer hardware. So Canon is expanding its business with extra products amid weakening demand for digital cameras. Revenue from camera sales has fallen in the last three fiscal years as more and more consumers prefer to take pictures by cameras installed in smartphones.
Axis Communications AB produces video-surveillance equipment used in casinos and shopping malls. Canon Inc. has been already involved into a similar business. The company said in a statement the network surveillance camera business would be a “driving force for future growth within Canon Group.”
