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Ricoh To Acquire Ikon
The announcement of the $1.62 billion deal concludes Ikon’s dramatic strategic review process.
August 27, 2008
Ricoh Company, Ltd., the Tokyo, Japan-based manufacturer of office equipment such as printers, fax machines, and copiers, will acquire Ikon Office Solutions, Inc. for about $1.62 billion.
Ricoh, as a result of the merger, plans to expand its business operations into Ikon’s customer base in North America and Western Europe. Ikon, based in Malvern, Pennsylvania, is the leading independent provider of document management systems. Ricoh is presently a supplier to Ikon’s office equipment business.
Ricoh Americas Corporation, a subsidiary of Ricoh Company, will acquire the document management company in a reverse triangular merger, and will pay $17.25 per share in cash. This price is a 33% premium over Tuesday’s closing price.
Both companies’ boards of directors approved the transaction, which is expected to close in the fourth quarter of 2008.
Shiro Kondo, president and chief executive officer of Ricoh, said “Ikon has terrific strength in areas that complement Ricoh’s growth strategy. Ikon has advanced Professional Services capabilities with a long list of satisfied large customers.”
Ikon chairman and chief executive officer Matthew J. Espe said, “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.”
Ikon, which was founded in 1952, presently employs 24,000.
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