You might not have given it much thought, but every time you take a picture on your smartphone, sellers of digital cameras weep. This has certainly been the experience for Japanese company Nikon: sales of digital cameras have fallen by nearly two-thirds over the last two years across the industry.
Nikon is to buy Scottish retinal imaging company Optos (OPTS) for £259m in an effort to diversify its revenue stream and expand its footprint in the medical technology field. Shares in Optos - which makes eye-scanning devices which check for signs of diseases - rocketed from 260p at the end of February to 345p on the back of the news. Nikon's recommended cash offer of 340p a share represented a 30 per cent premium over the closing price on 26 February.
It's been reported that Nikon made a private offer to the board in December, which was rebuffed, before returning with an increased bid. Optos chief Roy Davis said Nikon will keep the workforce - including his own position - intact. Nikon also said it will continue to invest in Optos to promote its growth, once the deal is closed.
