Japanese printing company Ricoh has purchased 51 percent of IBM’s printing systems division and will buy out the remainder of the business in three years, IBM announced Thursday.
The cash deal will total $725 million for the first 51 percent, while the remaining 49 percent’s price tag will be determined in three years.
The agreement between the companies will result in a new venture called the InfoPrint Solutions Company. The company is expected to begin operations with 1,200 employees and will be headquartered in Boulder, Colo.
“IBM and Ricoh have both benefited from a strong relationship for many years, and this agreement is a natural extension of that relationship,” says Samuel J. Palmisano, IBM’s chairman, president and CEO. “… The eventual transfer of the IBM printing systems division to Ricoh enables IBM to continue to refine its focus on its strategic businesses and the clients of those businesses.”