Japan's Ricoh to buy IKON Office for $1.6 billion

August 27, 2008 8:16:30 AM PDT
IKON Office Solutions, which sells and leases copiers, printers and other office machines, has agreed to be bought by one of its suppliers, Ricoh Co. of Japan, for $1.6 billion. The offer of $17.25 per share represents a 33 percent premium to IKON's average stock price for the last two months, the company said. IKON shares closed Tuesday at $15.56.

The deal will combine IKON's sales and service capabilities with Ricoh's engineering and manufacturing expertise, IKON said. It follows an "extensive review of our strategic opportunities," said IKON Chairman and Chief Executive Matthew Espe in a statement.

IKON also sells and leases equipment from other companies, including Canon Inc. and Hewlett-Packard Co. It was not immediately clear if IKON will maintain its relationship with those companies.

The deal is expected to close in the fourth quarter. As a subsidiary of Ricoh, IKON will keep its headquarters in Malvern, it said.