Shimadzu : acquires California X-ray Imaging Services, Inc.to strengthen direct sales of medical systems on the West Coast of the U.S.

On April 1, Shimadzu Corporation (hereinafter "Shimadzu") has acquired all of the shares of California X-ray Imaging Services, Inc. (VACAVILLE, CA.; hereinafter "CIS" ) through its U.S. subsidiary Shimadzu Precision Instruments, Inc. (hereinafter "SPI") and made the company a subsidiary of SPI. CIS will be merged into Shimadzu Medical Systems USA (hereinafter "SMS"), medical systems division of SPI. Through this acquisition, Shimadzu will realize the "expansion of direct sales areas," which is one of the key measures of the medical systems business in the Medium-Term Management Plan, in order to strengthen relationships with customers and improve profitability.

CIS has successfully provided medical imaging products and services as an authorized dealer of several professional brands since the year 1992. CIS's focus has been throughout the northern California and northern Nevada of the U.S. and has established an excellent business reputation among its customers.

The global market for diagnostic imaging equipment is estimated to be worth about 3 trillion yen and is expected to be grown. The U.S. market, the largest in the world, holds particular significance for our company's medical systems business. In recent years, the U.S. healthcare landscape has witnessed a notable trend of hospital mergers and acquisitions, leading to the emergence of IDNs^* as key players. These IDNs are increasingly demanding uniform and high-quality service delivery across various areas. Additionally, advancements in medical technology have propelled customer needs forward, underscoring the importance of close collaboration with customers to deliver products and services that meet their requirements.

With the acquisition of CIS, the Shimadzu Group will expand its direct sales and service area to provide uniform high-quality service to customers in the U.S., and develop new products and services based on the customer needs.. In addition, through synergy with SMS's Northwest Branch in Washington and other states, we will develop a system to address the needs of IDNs throughout the West Coast region. By implementing these measures, our group plans to increase sales in the medical systems business from approximately 76 billion yen in FY 2022 to approximately 82 billion yen in FY 2025.

• Note: Abbreviation for Integrated Delivery Network. An integrated medical services network that operates medical institutions of various size over a wide area in the United States.

From the left is Mr. Gary Boudreaux, Founder of CIS; Junji Sakamoto, President of SPI

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Shimadzu Corporation published this content on 05 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 05 April 2024 01:06:03 UTC.