Signaling its interest in the mobile ultrasound market, the Fujifilm Holdings Corporation has entered into an agreement to purchase SonoSite, Inc., for roughly $995 million.
SonoSite, headquartered outside Seattle, develops bedside and point-of-care ultrasound equipment, including ultra-high frequency micro-ultrasound and technology and impedance cardiography equipment. The company’s portable devices are used in more than 20 clinical specialties and are also designed for applications where ultrasound isn’t typically found, such as emergency medicine, surgery, critical care, internal medicine, musculoskeletal and vascular access procedures.
“This transaction significantly accelerates Fujifilm’s full-scale entry into the fast-growing hand-carried ultrasound equipment market and will position ultrasonography as a strategic pillar for the future growth of our medical systems business,” said Shigetaka Komori, president and CEO of Tokyo-based Fujifilm, in a press release. “Beginning with the sales of X-ray films in 1936, Fujifilm gradually developed its business in the medical field. Since the release of the world’s first FCR digital x-ray diagnostic imaging system in 1983, the company has continuously pursued one central goal – providing easy-to-interpret, high-quality images at the medical frontline. We are confident that, together with SonoSite, we will further enhance our technological expertise to develop medical imaging devices that contribute to the improvement of medical diagnostics and care quality for patients worldwide.”
Company officials say the deal will allow Fujifilm to add its imaging technologies to SonoSite’s point-of-care expertise and miniaturization capabilities, developing and expanding both mobile and traditional diagnostic portfolios. Company officials say SonoSite has the eight-largest share (approximately 4 percent) of the worldwide ultrasound equipment market and the second largest share (about 40 percent) of the portable ultrasound equipment market.
Officials say the ultrasound diagnostic equipment market has a growth rate of about 3 percent, while the mobile ultrasound equipment market will see double-digit growth as it moves into the emergency care, orthopedics and home-based care markets.
“We are pleased that this transaction gives our shareholders the opportunity to realize full value for their SonoSite shares,” said Kevin Goodwin, president and CEO of Bothell, Wash.-based SonoSite. “We are also very excited to be partnering with Fujifilm as it will enable us to significantly accelerate our international business and product development efforts, and respond to the fast-evolving needs of physicians around the world. We believe that the performance, size, ease of use and cost-effectiveness of our products will drive further growth in existing ultrasound markets, and are opening new markets as they bring ultrasound visualization out of the imaging lab and to the point-of-care, whether at the patient’s bedside or the physician’s examination table.”
Through a U.S. subsidiary, Fujifilm will make an all-cash tender offer to purchase all outstanding shares of SonoSite common stock for $54 per share in cash, a price representing a premium of 50 percent over SonoSite’s average closing stock price over the three months ending December 14 and a 75 percent increase over the company’s closing stock price on November 2. Following completion of the tender offer, Fujifilm intends to acquire the remaining outstanding shares of SonoSite common stock through a second-step merger.
Once the deal is complete, SonoSite will become a wholly owned subsidiary of Fujifilm, with no changes expected in the company’s management or location.
