Canon Inc has bid for SEK 23.6 billion ($2.83 billion) for global video surveillance leader Axis AB, the biggest purchase in the history of the Japanese firm, which is looking to grow beyond the dwindling camera market.
Canon reported the launch of an offer to buy all the shares of the Swedish company for 340 kroner a unit, a premium of about 50 percent over its closing price of 226.90 in Monday's trading.
At 1126 GMT, Axis shares were up 48 percent to 336.50 kroner.
Axis said its board of directors unanimously supported the offer and that three of its major shareholders, who control about 40 percent of the shares, will accept it.
Canon already sells surveillance cameras and considers the sector as a growing market, although it did not reveal how much it enters with these products.
The deal will make Canon the biggest player in the video surveillance market, valued at an estimated $15 billion at the end of last year, according to analytics firm IHS.
Within this market, there is a $3.86 billion segment of network-connected security cameras, led by Axis, with a 17.5 percent share in 2013.
The deal comes after Canon reported a slight increase in fourth-quarter profit late last month, as the yen decline and rising sales of office equipment offset weakness in its camera division, which competes with smartphones and its ability to generate high-quality images.
