Tuesday, April 8, 2008
MFP Wars "KonicaMinolta Buys Danka USA"
Will KonicaMinolta now join the ranks of Xerox, Canon & Ricoh. Some think they are there already. If you haven't heard KonicaMinolta bought Danka USA today, just a few weeks after Ricoh announced that they had acquired Danka (Europe).
Danka founded in 1977 in Tampa, Florida as and entrepreneurial venture. By 1986, Danka had become the leading office imaging distributor in the US. A year ago the stock traded for $1.37 per share and yesterday the stock was down to .22 cents a share. The total purchase price seems to be $240 million, hardware and supply sales for the last four quarters is about 200 million.
As an outsider looking in, KonicaMinolta products have been getting stronger and stronger, saturation of dealers and direct branches seems to be balanced. KonicaMinolta never cut their ties with Global, while Canon & Ricoh walked away. Not sure if they lost business here, I would tend to think that they gained business during the Xerox transition process. I now believe KonicaMinolta can be a major vendor for quite some time.
WOW, where does this leave the likes of Toshiba, HP and Canon? Will Toshiba do the same as Canon and Ricoh did with Global? Will HP fold and Canon also fold up their tents? My thoughts, HP will stay put if they can, Toshiba is continuing to buy dealerships in an attempt to maintain market share and I think they'll get out. But, what about Canon? They took quite a hit from Global, now Danka, and Ikon which was pretty much Canon is now three major product lines, Canon, Ricoh and Kyocera.
Its now a question of WHO has the bucks and the brawn to buy IKON! It will happen, it's just a question of when. Who can do? HP can, Canon can, I'm not too sure any of the players could pull off a purchase of IKON. Just a guess, but it would probably take at least 3 billion to pull it off.