The two companies have formed a joint venture company called InfoPrint Solutions based on the IBM Printing Systems division. Ricoh will initially own 51 per cent of the venture and is set to progressively acquire the remaining 49 per cent over the next three years as the venture evolves into a wholly-owned Ricoh subsidiary.
IBM chairman and chief executive Sam Palmisano said the “eventual transfer of the IBM Printing Systems Division to Ricoh” would let Big Blue continue to refine its focus on its strategic businesses.
Mr Palmisano said in addition to its track record in the print industry, Ricoh would provide the investment necessary for InfoPrint Solutions to continue to innovate.
The initial part of the deal is expected to be completed by the end of the IBM second quarter. The joint venture is expected to begin operation with about 1,200 employees.
IBM will continue to provide maintenance services to InfoPrint Solutions clients under a service agreement and over time more than 1,000 IBM printer maintenance specialists may join the new company.
The joint venture will access IBM's worldwide distribution and sales network. InfoPrint Solutions will be an IBM worldwide partner for printers.
IBM's printer development capabilities will also become part of the joint venture, while IBM Global Financing will continue as a financing provider.
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