Toshiba plans to spend billions of dollars on mergers and acquisitions to boost annual sales in its healthcare division to 1 trillion yen ($9.78 billion) by March 2018, president Hisao Tanaka said on Thursday.
The Japanese conglomerate sees healthcare as key to its growth. It aims to raise the sector’s revenues by 50% to 600 billion yen in the business year to March 2016 and wants double-digit profit growth during the same period.
Beyond that, the company will need mergers and acquisitions, Tanaka said. He did not give details of any potential targets. Toshiba, Hitachi and Mitsubishi Electric are all seeking to expand their healthcare businesses to tap growing demand from an ageing population at home and boost revenues as their consumer electronics face stiff competition from foreign rivals.
Imaging diagnostics for medical use are the main product of Toshiba’s healthcare sector. The company currently has an 11% share of the 2.2-trillion yen imaging diagnostics market, a stake it wants to boost by 2017/18 so that it can become of the world’s top three makers of the technology.