Renowned camera company Canon Inc. is set to take control of British Columbia-based semiconductor company Redlen Technologies for $341 million CAD ($270 million USD).
Canon announced the deal September 9 noting Redlen is set to become a wholly-owned subsidiary of Canon and the deal is part of a broader plan to expand into the medical business.
As first reported by Nikkei Asia, Canon is set to expand its ownership of Redlen from 15 percent to 100 percent as part of the deal. A spokesperson for Redlen’s largest shareholder, BC-based venture firm Pangaea Ventures, confirmed to BetaKit that Canon is purchasing the additional 85 percent of Redlen for $341 million CAD.
Founded in 1999, Redlen manufactures semiconductors that are used in medical imaging systems, food quality control, and security scanning like that done at airports.
Canon first acquired a stake in Redlen in 2018. With the 100 percent stake acquisition, Redlen’s leadership and overall team are set to stay in place as part of the deal.
Canon stated that with the purchase of Redlen it obtains advanced technology that strethengs its medical business, which launched in 2018, and will enable Canon Medical Systems Corporation, a subsidiary of Canon, to accelerate the development of competitive PCCT systems. Photon-counting computed tomography, or PCCT, is an emerging technology in CT imaging, which is argued to be a major technological milestone in the global diagnostic imaging field.
“Redlen is the global leader in X-ray photon counting sensors in the medical, security and non-destructive inspection fields,” said Toshio Takiguchi, the head of Canon’s medical group. “In collaboration with Redlen, we expect to not only accelerate the development and mass production of next-generation CTs, but also expand our component business by deploying leading-edge sensors to a wide range of fields.”
Redlen is seen as a leading manufacturer in its field of semiconductors and, according to Crunchbase, has raised $29.4 million to date. Its backers have included Pangaea Ventures, which first invested in 2014; Yaletown Partners; and BC Advantage Funds among others.
Regarding the Canon deal, Redlen president and CEO Glenn Bindley noted his company has long-worked with Canon Medical on PCCT. “We’re excited to now become a member of the Canon group with access to the world class manufacturing and scale-up expertise within Canon that will help us accelerate market adoption of our industry-leading radiation detection and imaging products,” he said.