The deal sees Fujifilm spreading its revenue sources by investing in biotech firms involved in regenerative pharmaceuticals and medicine. The fate of its acquisition of Xerox is still uncertain as it faces strong headwinds from activist investors Carl Icahn and Darwin Deason.
In efforts aimed at boosting its healthcare business, Fujifilm Holdings said it would acquire two biotechnology business of Japan’s JXTG Holdings Inc, for around $800 million. As part of the deal, it will also be purchasing U.S. biotechnology firm Cellular Dynamics International Inc.
The Japanese giant plans on boosting its growth by acquiring businesses involved in regenerative pharmaceuticals and medicine; at the same time it wants to gain size and scale in its existing photocopier business through its planned $6.1 billion acquisition of Xerox Corp.
Fujifilm said it plans on completing the acquisition by June this year.
With regard to its acquisition of Xerox, Shigetaka Komori, Fujifilm’s CEO said he was confident Fujifilm would overcome opposition to the Xerox deal, which incidentally has come under fire from activist shareholders, Carl Icahn and Darwin Deason, who have more than 10% stake in Xerox, and have urged shareholders to oppose the merger.
“We’ve been telling Xerox shareholders how the deal would benefit them,” said Komori on Thursday.
Icahn and Deason have criticized Fujifilm’s acquisition of Xerox since the deal significantly undervalues the U.S. company; Komori has said Fujifilm has no plan to alter its offer ahead of the upcoming Xerox shareholders meeting.