Canon to buy video surveillance leader Swedish Axis for $2.8 billion

Tuesday last week Canon Inc made an 23.6 billion SEK ($2.83 billion) offer for network video surveillance market leader Axis AB.

This is the biggest purchase ever for the Japanese firm. Canon’s decision about the offer is based on falling demand for digital cameras and an aim to diversify its operations overseas.

Axis AB
With 1627 employees in more than 40 countries and 4.717 M. SEK in sales in 2013 Axis is the market leader in network video. The majority of Axis’ sales are generated by the video product area; network cameras, video encoders, accessories and application software.
After the acquisition Axis will remain as a separate legal entity within Canon, and its current management team will be maintained.

A top player in the video surveillance market
Canon already sells surveillance cameras and sees the sector as a growing market. However, the company has not disclosed how much it earns from such products. The deal will make Canon a top player in the video surveillance market. A market which was worth an estimated $15 billion at the end of last year, according to researcher IHS. Within the market, there is a $3.86 billion segment for network-connected security cameras. This segment is led by Axis with a 17.5 percent share as of 2013.

The acceptance period of the offer is expected to commence on 3 March 2015 and is expected to expire on 1 April 2015.