Canon Inc (NYSE: CAJ) made a 23.6 billion-Swedish-crown ($2.83-billion U.S.) offer for network video surveillance leader Axis AB on Tuesday -- the biggest purchase ever for the Japanese firm trying to expand beyond a shrinking camera market.
Canon said it had launched a bid to buy all the Swedish company's shares at 340 crowns apiece, a premium of nearly 50% to their closing price of 226.90 on Monday.
Axis said its board of directors unanimously supported the offer, and that three of its top shareholders representing around 40% of total shares will accept it.
Canon already sells surveillance cameras and sees the sector as a growing market, although it has not disclosed how much it earns from such products.
The deal will make Canon a top player in the video surveillance market, which was worth an estimated $15 billion U.S. at the end of last year, according to researcher IHS.
Within that market, there is a $3.86-billion U.S. segment for network-connected security cameras which is led by Axis with a 17.5% share as of 2013.
Canon's American depositary shares gathered 42 cents, or 1.3%, to $31.75, in mid-morning trade on Tuesday, within a 52-week trading range of $29.47 U.S. to $33.96 U.S.
