Canon To Acquire Axis

Canon Inc. announces that it has decided to make a recommended public cash offer (the “Offer”) to the shareholders in the Swedish company Axis AB to tender all their shares in Axis to Canon. Completion of the Offer is subject to a number of conditions. The Axis shares are listed on Nasdaq Stockholm.

The Offer is friendly in nature and the Board of Directors of Axis has decided to recommend Axis’s shareholders to accept it. The three largest shareholders in Axis, including the founders, who hold in aggregate approximately 39.5% of the total number of shares and voting rights in Axis, have undertaken to accept the Offer subject to certain conditions.

Under Phase IV of its Excellent Global Corporation Plan, launched in 2011, Canon aims to maintain its highly profitable structure and join the ranks of the world’s top 100 companies in terms of all key measures of business performance. As a key strategy toward the achievement of this goal, Canon aims to develop new business through globalized diversification.

In recent years, the video surveillance system market has continued to realize rapid growth. Canon views its network surveillance camera business as a promising new business area and positions the business as a driving force for future growth within the Canon Group. Canon would be pleased to welcome Axis, the global leader in the network video solutions industry, into the Canon Group.

After the completion of the Offer, the combination of Canon’s excellent optical and imaging technologies and Axis’s outstanding network image processing technology will enable both companies to offer innovative, sophisticated network video solutions. Furthermore, by making use of Canon’s wide range of research and development capabilities and manufacturing technologies, Axis will be able to boost product competitiveness.

Canon and Axis each own intellectual property in different technology fields. Together, the combined intellectual property portfolio will be strengthened across a broad area of technologies, allowing leveraged product development which will contribute to an increased ability to introduce new and innovative products, solutions and services to the market.

To date, Canon has created a global distribution and service network for its camera products and business equipment. Additionally, Axis has a well-established worldwide network of 75,000 business partners, including system integrators. With Axis joining the Canon Group, Canon will be able to add Axis’s distribution and service channels for network system products.

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