Canon to buy Sweden's Axis Communications for US$2.8b

[HONG KONG] Canon Inc will buy Sweden's Axis Communications AB for 23.6 billion Swedish kronor (US$2.8 billion), in the Japanese camera maker's biggest-ever acquisition.

Canon, the world's largest camera maker, agreed to buy all Axis shares for 340 kronor each in cash, almost 50 per cent more than the stock's closing price Monday in Stockholm, according to a statement. The offer price is conditional to a dividend that Axis plans to pay its shareholders.

Canon been diversifying its printer business with additional services as the traditional camera business declines. Revenue from camera sales fell the last three fiscal years, while sales of office products including printers and peripherals have gained.

Axis, which makes video-surveillance equipment used in casinos and shopping malls, fell 1.5 per cent to close at 226.90 kronor. The stock has risen 14 per cent this year.

Shares of Canon rose 1 per cent in Tokyo trading to close at 3,771 yen before the announcement.

BLOOMBERG