This was emailed to me yesterday in reference to the Canon/Oce deal. Seems like good stuff, so I thought I'd share with everyone.
Canon intends to make an offer of € 8.60 per Share for 100% of the outstanding Shares of Océ, representing a premium of 70% over Océ's stock price.
There does not appear to be opposition to the deal either from European regulators or Océ board members.
Océ will remain a separate legal entity as a Canon division, headquartered in Venlo (the Netherlands).
The Océ brand is to be maintained and applied in all relevant markets. Océ will continue to lead its R&D and manufacturing and key management will remain in place.
Océ will be responsible worldwide for wide format, commercial printing and business services. Canon's Large Format Printing will functionally be integrated in the Océ Production Printing Division ("Océ division") over time.
Océ's office activities will be integrated in Canon's Office Imaging Products (OIP) division.
Océ had 2008 sales of 2.9 billion euros, one seventh of Canon's revenue from imaging products and printers.
The integration of both Canon and Océ businesses will take place over the next 3 years. The Sales and Service integration will be led by joint integration teams per region with initially two dedicated organizations, respectively for Canon's OIP and for the Océ division.
Expected Synergy
Océ's headquarters, combining R&D, production and sales functions, is expected to play an integral role for Canon's European regional operations.
Canon and Océ products have little overlap. Canon will have access to Océ's production printing and wide format technologies while Océ will benefit from Canon's office MFP product line where Océ has struggled.
---> "Oce's strength is really more in the higher end production printing and they just don't quite have the market share, and not quite the pull yet in the office space" - Customer quote (from a recent Ricoh Win Analysis of a global account)
The acquisition will give Océ access to Canon's large sales network in Asia (were Oce is weak) and help Canon rebuild its sales presences in the US after the loss of IKON.
Konica Minolta stands to lose the most from this deal. Océ and Konica Minolta formed an alliance last year that had Océ selling Konica Minolta office MFPs while Konica would have access to Océ's heavy production printing equipment. Currently, Océ is the largest Konica Minolta reseller.
-=Good Selling=-
As a Canon channel partner, We are very excited to see this partnership!
ReplyDeleteCanon certainly is one of the greatest vendors out there. With acquisitions like these, it just goes to show how dedicated they are in channel sales strategy and business planning.
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