Ricoh 2009 Annual Report Download - page 16

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ANNUAL REPORT 200915
Becoming No. 1 in each of our target
businesses has come within reach
The acquisition of IKON is a great milestone for the Ricoh Group,
and was actually beyond our expectations. We are now in a
good position to achieve the leading market share in the U.S.
and European markets. In this sense, the execution of such
a transaction in the fi rst year of the 16th MTP has signifi cant
implications for the future of the Ricoh Group.
Ricoh had long built a strong trusting relationship with
IKON through the supply of digital MFPs and other products.
The transaction was made possible when the two companies
found that they shared the recognition that the ability to meet
expectations from large accounts, especially global service
capabilities and globally integrated quality, is becoming ever more
important. We are convinced that the addition of IKON into the
Ricoh Group has enhanced our all-around capabilities, giving us a
more competitive edge to win in global markets.
F O C U S
In August 2008, the U.S.-based leading of ce
equipment distributor IKON Of ce Solutions,
Inc. agreed to be acquired by Ricoh, and
became a consolidated subsidiary in
November 2008. This 1,632-million-dollar
(approximately 163.2 billion yen) deal is the
largest transaction in Ricoh’s history.
Q3
IKON, a leading independent distributor of offi ce equipment,
has a strong sales and service network primarily in the
Americas and European markets. In the U.S. market, in
particular, the company maintains strong relationships
with many Fortune 500 companies and is a powerful player
in printing and other outsourcing services and production
printing business markets.
Benefi ts from the acquisition are expected to take shape
in many areas, including considerable market share growth
as IKON customers shift to Ricoh products, which will make
our target of becoming No. 1 in our target business areas
even more likely. In addition, the sales channels of the Ricoh
Group have been strengthened by combining IKON’s sales
and service network with more than 400 locations mainly
in Canada and the U.S. We also envision more streamlined
internal systems and processes, including supply chain and
back offi ce systems, in the future.
Furthermore, IKON’s strong sales infrastructure,
experience, and expertise in printing and other outsourcing
services, as well as sales and services of production printing,
are expected to contribute powerfully to Ricoh’s growth.
Acquisition of IKON leads a stronger global sales and service network
What were the objectives behind
the acquisition of IKON?