Issue #0703/2 - Ricoh and IBM form alliance to create a joint venture hard copy solutions company.
For the second time, IBM is offloading its printer interests, this time in a joint venture arrangement with Ricoh. The new company, InfoPrint Solutions Company, will be jointly owned by Ricoh and IBM but with Ricoh holding a 51% interest at the outset. Ricoh will acquire the remaining 49% from IBM over the next three years, eventually giving it 100% ownership.
As one of the historical leaders in the copier business, Ricoh has fully embraced the MFP revolution over recent years and is tackling the entire office hard copy market with vigour, offering a comprehensive range of business copiers, printers and MFPs.
For both IBM and Ricoh, a partnership will allow them to maximise on their solutions strength, with IBM’s potent service operations providing maintenance facilities. It is expected that more than 1,000 IBM maintenance personnel will transfer to the InfoPrint Solutions Company, making it a self-contained core business for Ricoh.
This deal is likely to signify another nail in Lexmark’s coffin unless the company can perform a radical turnaround, like that achieved by Xerox at the beginning of the decade. Ricoh is sure not to want the company to be selling Lexmark built hardware, with all of its build quality issues, when it can sell Ricoh hardware.
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