IBM print spin-off begins operations

 

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Posted on 4 Jun 2007 at 13:49

InfoPrint Solutions, a joint venture of IBM and Ricoh, formally begins its operational life today. Formerly IBM's Printing Systems Division, the formation of the new printing company was announced earlier this year.

Under the terms of the original deal, Ricoh owns 51% of InfoPrint and its eponymous line of printers and print management systems. Ricoh is also committed to progressively acquiring the remaining 49% over the next three years, so that the joint venture becomes a fully owned subsidiary. For its part, IBM received $725 million for the spin off.

With revenues of $1 billion recorded for 2006 (as an IBM division) and 1,200 employees around the world, InfoPrint Solutions will be a major player in the printing industry.

'With this launch, we have created a billion-dollar enterprise with the backing of two undisputed industry leaders, IBM and Ricoh,' said Tony Romero, CEO and President, of InfoPrint Solutions. 'Together, we will drive the next generation of innovation in output solutions.'

Plans outlined by Romero include increased investment in R&D, improving its services offerings, and increasing its sales and support organisation.

The deal resembles IBM's shedding of its IBM Personal Systems Division to Lenovo back in 2004. The deal, worth around $1.75 billion for IBM, saw the Chinese computer manufacturer acquire IBM's line of laptops and PCs.

Author: Alun Williams