Ricoh Wednesday said it has reached an agreement to buy IKON Office Solutions for $1.62 billion. The two companies hope to close the deal by year's end.
"The offer represents a 33 percent premium over IKON's trailing 60-day average stock price as of market close on August 26th," IKON Chairman and CEO Matthew Espe said in a statement. "In addition, combining with Ricoh, one of the world's most respected and innovative companies, will enable us to strengthen our offerings to customers and create new opportunities for our employees."
Ricoh, a manufacturer of digital office peripherals, is looking to IKON to assist it in strengthening its ability to adequately assess and address customer needs.
IKON (2008 VARBusiness 500 rank: 22) is a channel for document management systems, offering equipment such as multi-function printers, fax machines and printers, and also offers customers an extensive services portfolio. The solution provider has more than 400 sales and service offices in the United States, Canada and Western Europe.
"IKON has terrific strength in areas that complement Ricoh's growth strategy," said Shiro Kondo, president and CEO of Ricoh. "IKON has advanced Professional Services capabilities with a long list of satisfied large customers. IKON is respected as well for its production print sales and service expertise."