Ricoh Buys IKON
Published August 29, 2008 at 5:09 pm · Filed under Fax / MFP
RICOH TO ACQUIRE IKON OFFICE SOLUTIONS, INC.
Dated: 27 August 2008
Tokyo - August 27, 2008 - Ricoh Company, Ltd. (TSE: 7752, “RICOH”)(President & CEO: Shiro Kondo) today announced that it has reached a definitive agreement with IKON Office Solutions, Inc. (NYSE: IKN, “IKON”) to acquire IKON (the “Transaction”) through RICOH’s wholly owned U.S. distribution subsidiary, Ricoh Americas Corporation (”RAC”). The Transaction is supported by both RICOH and IKON and has been approved by the Boards of Directors of the respective organizations.
1. Background
RICOH (headquartered in Tokyo, Japan) is a global leader in imaging solutions that has brought to the market innovations such as digitalization, network solutions, and colorization. In the rapidly growing printing and document solution areas, RICOH’s challenge has been to strengthen its channels for assessing customers’ potential needs and making appropriate proposals based on a customer-driven approach. In the extremely competitive U.S. market, Ricoh is committed to further strengthening its sales and support channels.
As the world’s largest independent channel for document management systems and services, IKON (headquartered in Malvern, Pennsylvania) supplies and services a wide range of office equipment, such as MFPs (multi-function printers), fax machines and printers, in the U.S., Canada and the Western European markets. With over 400 sales and service locations, IKON has a long track record with Fortune 500 companies among its customers. RICOH has been a key supplier to IKON, and the relationship between the two companies has a long history. In addition, IKON also provides professional services and document outsourcing services to a wide variety of customers.
“IKON has terrific strength in areas that complement Ricoh’s growth strategy,” said Shiro Kondo, President and CEO of Ricoh Company, Ltd. “IKON has advanced Professional Services capabilities with a long list of satisfied large customers. IKON is respected as well for its production print sales and service expertise. We are excited to add the very experienced IKON management team and the thousands of skilled and dedicated IKON employees to the Ricoh family.”
IKON Chairman and Chief Executive Officer, Matthew J. Espe, said, “Following an extensive review of our strategic opportunities, our Board conducted a formal process to evaluate alternatives for the Company, and has approved this attractive transaction for our shareholders, customers and employees. The offer represents a 33% premium over IKON’s trailing 60-day average stock price as of market close on August 26th. In addition, combining with Ricoh, one of the world’s most respected and innovative companies, will enable us to strengthen our offerings to customers and create new opportunities for our employees.”
Espe concluded, “We remain fully committed to providing the highest quality of support and service to all our customers.”
As a result of the Transaction, RICOH will strengthen its business infrastructure in the U.S., Canada and Europe by combining with IKON’s strong sales and service network. RICOH also will gain access to IKON’s customer base, which includes major account customers and government and public sectors in the U.S. This acquisition is yet another step in RICOH’s integrated global growth strategy.
Release from www.Ricoh.co.uk website
