Japanese office machine maker Ricoh Co. Ltd. said Wednesday it would acquire Ikon Office
Solutions Inc. for nearly $1.62 billion in cash, in a move to bolster its business in the U.S. and Canada, as well as Europe.
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Ricoh offered $17.25 per share, a premium of nearly 11% to the Malvern, Pa.-based target's close Tuesday of $15.56. Ikon shares were up 9.38% at 10 a.m. Wednesday, at $17.02.
Ricoh, makes printers, fax machines and similar products. The company has 83,400 employees across the globe and reports $22 billion in annual revenue. It cast the deal as an opportunity to expand globally. Ricoh's last significant U.S. buy was for a $725 million deal for
IBM Corp.'s printer division in January 2007.
Ikon, an office equipment distributor and document management services firm, posted $4.2 billion in revenue for its fiscal year 2007, ended Sept. 30, 2007, and has nearly 24,000 employees in upwards of 400 locations in North America and Western Europe. The deal wraps up a strategic review for Ikon. -
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