Ricoh to buy IBM digital print unit

 

25 January 2007 — Tokyo (JPN): Ricoh is to acquire IBM’s digital business-printer operations.

 

IBM will be paid $725 million in cash for the initial 51 percent stake and a prepayment on the remaining 49 percent. The price for the remainder of the operations will be determined after three-year period.

 

The sale is part of IBM’s ongoing strategy to drop product lines that are not what CEO Samuel Palmisano deems to be the company’s core offerings: technology services and big-business hardware as well as software.

 

This transaction is expected to close during Q2.