Report: After accounting scandal, Toshiba looks to sell medical equipment business
According to a recent report, Toshiba is considering selling its medical equipment business subsidiary, Toshiba Medical Systems Corp., to Fujifilm Holdings.
The report, made on Dec. 30 by The Yomiuri Shimbun, said several companies are interested in potentially bidding to purchase the Toshiba subsidiary. Fujifilm is currently viewed as “the likeliest” candidate, but a final decision is not expected until March.
Toshiba made headlines in 2015 when the company admitted it overstated its profits by nearly $2 billion over the last seven years. A change in management was made as a result, and new president Masashi Muromachi said in a statement the company would devote itself to regaining the public’s trust and reviving the company.
The large-scale accounting scandal caused Toshiba to post a $4.5 billion loss in 2015, and it has also been cited as the company’s primary reason for selling Toshiba Medical Systems Corp.
According to the report, sources have indicated that the sale is likely to be made to a Japanese company, because “sale to an overseas company could lower the competitiveness of Japanese firms and it would become difficult to obtain understanding from the government.”
Fujifilm has already made some significant acquisitions in the healthcare sector recently. Back in May 2015, for example, Fujifilm Medical Systems U.S.A., a wholly owned subsidiary of Fujifilm Holdings, acquired TeraMedica, a global healthcare informatics company known for its vendor neutral archiving (VNA) technology.
Michael has more than 18 years of experience as a professional writer and editor. He has written at length about cardiology, radiology, artificial intelligence and other key healthcare topics.