IBM HANDS PRINTING DIVISION TO RICOH !

  • mse-big-banner-new-03-17-2016-416716a-tonernews-web-banner-mse-212
  • 05 02 2016 429716a-cig-clearchoice-banner-902x177
  • ncc-banner-902-x-177-june-2017
  • cartridgewebsite-com-big-banner-02-09-07-2016
  • 2toner1-2
  • 4toner4
  • clover-depot-intl-us-ca-email-signature-05-10-2017-902x1772
  • Print
  • banner-01-26-17b
  • ces_web_banner_toner_news_902x1776
Share

IBM HANDS PRINTING DIVISION TO RICOH !

 user 2007-01-29 at 10:03:00 am Views: 55
  • #17061

    IBM to hand printing division over to Ricoh
    Ricoh to acquire IBM printing systems unit over three years
    International
    Business Machines Corp. is spinning off its printing division into a
    new company that Japan’s Ricoh Co. will control, part of IBM’s ongoing
    efforts to pare sideline businesses and focus on more profitable
    segments of the technology industry.The deal, announced Thursday, will
    see Ricoh pay IBM $725 million in cash up front and an unspecified
    remainder later. Ricoh initially will own 51 percent of the new
    company, InfoPrint Solutions Co., and will take full ownership within
    three years.Ultimately IBM expects a pre-tax gain between $175 million
    and $275 million. Between $100 million and $150 million of that should
    come when the deal closes, in the second quarter.The spinoff had little
    effect on IBM shares, which were up 34 cents to $97.74 in morning
    trading Thursday on the New York Stock Exchange.Faced with middling
    overall growth in corporate technology spending, IBM has sold off
    several units in recent years in hopes of increasing its profit
    margins. The biggest deals have included IBM’s $2.05 billion sale of
    its disk-drive business to Hitachi Ltd. and the $1.75 billion sale of
    its personal-computer business to China’s Lenovo Group Ltd.IBM’s
    printing division has a long history but has diminished in the company
    over time. In 1991, IBM sold off its typewriter and low-end printer
    businesses, creating a company that became today’s Lexmark
    International Inc.The remaining division now heading to Ricoh has
    focused on high-quality production printing hardware and software for
    large businesses. It is profitable, according to IBM Executive Vice
    President Nick Donofrio.But according to IBM’s latest annual report,
    filed nearly a year ago, the printing unit shrank from $1.34 billion in
    revenue in 2003 to $1.14 billion in 2005. IBM said the unit’s sales
    were about $1 billion last year.Given that slowdown, IBM decided it
    would be better to let someone else invest in driving the division
    forward.“It doesn’t mean it’s a bad business — far from that. It
    simply means it needs a new direction,” Donofrio said. “It became
    more and more obvious that we needed to do something here.”InfoPrint
    Solutions will have about 1,200 employees and headquarters in Boulder,
    Colo. Eventually, an additional 1,000 IBM printer-maintenance
    specialists may join the company, depending on how the business
    progresses.It will be headed by Tony Romero, who had been managing the
    business for IBM.