As the news broke yesterday of the Ricoh and Toshiba deal; more details have been released.
Today, Ricoh Company, Ltd. and Toshiba Tec Corporation have formally announced a business partnership to integrate the development and manufacturing of multifunction printers (MFPs). The two companies have resolved to agree to the integration, which will be carried out through a company split effective sometime between 1 April 2024, and 30 June 2024. The partnership will establish a joint venture with both companies as shareholders, focusing on MFPs’ development and manufacturing.
The decision to integrate their businesses comes in response to the changing landscape of the office printing market, which has seen a shift towards digitalisation and solutions combining hardware, software, and services. The partnership aims to strengthen the competitiveness and business foundations of office printing device manufacturing. This will be achieved by consolidating the two companies’ technological strengths, expanding planning, design, and development functions, joint purchases for parts and materials, and utilising production bases.
Additionally, the collaboration will extend to the planning and development of new solutions, leveraging the technologies and resources of both companies. By integrating image recognition technology, such as barcode printers and optical and image processing technologies, the joint venture will work towards providing competitive, high-quality products tailored to the needs of customers and the global market. The goal is to support customers’ digital transformation (DX) efforts and enhance workplace productivity.
The business integration will be implemented through an absorption-type split, with Ricoh and Toshiba Tec transferring their respective MFP development and manufacturing operations to a newly established joint venture. Ricoh will hold an 85% investment ratio in the joint venture, with Toshiba Tec holding the remaining 15%.
Completing the business integration is subject to the fulfilment of certain conditions, including compliance with competition laws and foreign investment regulations and obtaining necessary approvals and clearances. The schedule outlined in the announcement is subject to change based on the progress of the integration process.
The partnership between Ricoh and Toshiba Tec aims to create a resilient supply chain, enhance sustainability efforts through improved reuse and recycling, and provide innovative solutions to meet customers’ evolving needs in the digital era.
What next? Our spy in Tokyo Towers suggests another deal between two other Japanese OEMs is “in discussion” and could be announced as early as this summer.
