Japanese photography and imaging company Fujifilm Holdings is reportedly planning to acquire the medical equipment business of Hitachi.

Citing people familiar with the developments, Nikkei Asian Review reported that the deal could be valued at up to $1.55bn.

This acquisition is said to be Fujifilm’s strategy to scale up its medical business to negate sluggishness in its core business lines.

Recently, Fujifilm acquired a drug-making business from US-based Biogen and two biotechnology units from Japan-based JXTG Holdings.

To restructure its market, Hitachi has been selling its non-core assets while buying overseas companies to increase digital businesses.

Through the acquisition, Fujifilm hopes to compete with global competitors in imaging such as Siemens, GE Healthcare, Philips and Canon.

Recently, the entity has incorporated more products to its medical equipment business such as endoscopy, ultrasound and X-ray through acquisition.

In 2016, Fujifilm planned to purchase Toshiba Medical Systems. However, its rival Canon ended up buying the company.

Earlier this month Fujifilm bought a 25% stake in Fuji Xerox, owned by Xerox.

The entity also revealed plans to develop a diagnostic imaging product that combines its image processing technology with Fuji Xerox’s language processing technology.

In 2018, Fujifilm signed a joint research agreement with the Indiana University School of Medicine to develop medical imaging diagnostic support systems using artificial intelligence (AI) technology.