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 user 2008-09-05 at 3:45:57 pm Views: 70
  • #20566
    Xerox not worried about Ricoh’s purchase
    A year ago, Xerox Corp. bought office imaging equipment distribution giant Global Imaging Systems Inc. In that $1.67 billion move, one of the Rochester area’s major employers greatly beefed up its sales and distribution network.Last week, one of Xerox’s rivals did nearly the same thing. Ricoh Co. of Japan is buying Ikon Office Solutions for $1.62 billion in cash.With the purchase of Pennsylvania-based Ikon, Ricoh makes major inroads into the U.S. and Canadian office equipment markets.

    But Xerox is dismissing the idea that the acquisition makes Ricoh a difficult competitive challenge.”We see this move for what it is: a defensive play by Ricoh to try to keep pace with the industry’s leader — Xerox,” Xerox Office Group President Russell Peacock said in an internal message sent to employees last week.Office imaging equipment means big bucks to Xerox. For the second quarter of 2008, the company had revenues of $2.5 billion in its office segment.

    While Xerox’s Global Imaging carries some non-Xerox equipment, Ikon likely will become a distributor solely of Ricoh equipment, said Andy Slawetsky, president of Industry Analysts Inc. in Rochester.In his memo, Peacock said the Ricoh-Ikon deal causes more problems for other office equipment companies than it does for Xerox. He said it places competitors Canon and Konica Minolta “in a difficult position, especially considering Ikon delivers 35-40 percent of Canon’s total revenue in the U.S.”

    Xerox, which employs 7,600 people in the Rochester area, is giving some indications it hopes to capitalize on the moment. Some Ikon customers may be uncertain about issues such as being able to continue to get service for non-Ricoh machines.”We believe this change in the industry structure will be positive for Xerox and intend to aggressively leverage the opportunity presented by this disruption,” Peacock wrote.”Certainly it’s a good time for Xerox to turn up the heat on Ikon and go after their customers with a little more zeal,” Slawetsky said. “It gives them something to talk about, certainly.”