Eizo Corp announced that it has entered into a definitive agreement with Carina System Co., Ltd. of Japan to acquire all the company’s shares. Carina develops hardware, software and integrated systems for healthcare and broadcasting markets and is said to have a ‘considerable’ market share in video solutions for operating rooms with an installation record of over 300 hospitals in Japan.
In Japan, Eizo said that it aims to strengthen Carina’s number one position in video capture and distribution systems for operating rooms. For overseas markets, Eizo will use its sales network in Europe, US and China to develop the business globally. In addition to operating rooms in the healthcare market, Eizo will target other specialty markets to take “a bigger leap forward as a Visual Technology company”.
Analyst Comment
The company has just celebrated its 50th birthday. It started as an OEM supplier making, among other things, TVs for Mitsubishi and it was a big buyer of CRTs from Mitsubishi’s Kyoto works. The company then developed a branded product business, as Nanao and Eizo and then as Eizo. Over the last twenty five years or so, it has gradually got more and more business from specialist value added markets such as medical and air traffic control. As we reported from the ATM World Congress, the move is now further towards becoming a supplier of complete systems, so this acquisition seems to fit that evolution. (BR)
