Never saw this coming. It looked as though ComDoc was positioning itself to sell, however, I did not see it being Global. This is huge for us in the Northeast, specifically, PA and OH.
Ricoh's largest independent dealer....
And the fallout continues....
This is not good news for Xerox, you've read the press releases and they have laid off 3,000 workers (i think thats correct) and then one of their core companies spends millions an an acquisition. I like to see the financials of this deal and see if any money came from Xerox, they could end up with alot of egg on their facec.
The corrected release reads:
GLOBAL IMAGING ANNOUNCES AGREEMENT TO ACQUIRE COMDOC
Global Imaging Systems, Inc., a Xerox company (XRX:Xerox Corporation
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XRX 6.77, -0.20, -2.9%) , today announced a definitive agreement to acquire ComDoc, Inc. This acquisition will expand Global Imaging's coverage into four states offering them access to more than 14,000 new customers.
One of the larger independent dealers in the U.S., ComDoc, sells products from various suppliers, none of which today include Xerox. In addition to its existing offerings, ComDoc will start selling Xerox document management products following the close of the acquisition.
Comdoc, founded and headquartered in Akron, Ohio in 1955, has offices in Cincinnati, Cleveland, Columbus, Dayton and Youngstown, Ohio; Pittsburgh, Pa.; Albany, Buffalo and Syracuse, N.Y.; and Fairmont, W. Va.
This acquisition will continue Global Imaging's expansion of a national network of office technology suppliers to serve its growing base of small and mid-size businesses.
Subject to customary closing conditions, the acquisition is expected to be completed in the first quarter of 2009. Terms of the deal have not been disclosed.
About Global Imaging Systems
Global Imaging Systems operates through small and mid-sized businesses with regional core companies in the U.S. that sell and service document management systems such as printers, copiers and multifunction devices; network integration services; and electronic presentation systems. As an office technology dealer, Global sells products from various suppliers including Xerox, Sharp, Konica Minolta and Kyocera Mita. Xerox acquired Global Imaging in 2007 and operates it as a wholly owned subsidiary within Xerox's North American operations.
Carl Langsenkamp, Xerox Corporation, +1-585-423-5782, firstname.lastname@example.org
Note: For more information on Xerox, visit http://www.xerox.com. For open commentary and industry perspectives, visit http://www.xerox.com/blogs or http://www.xerox.com/podcasts.
Xerox(R), the Xerox wordmark and the spherical connection symbol are trademarks of Xerox Corporation in the United States and/or other countries.
SOURCE: Xerox Corporation
A Xerox Company Agrees to Buy Comdoc
Whoa! I had the call at 8:00am this morning and I was flabbergasted. My first thoughts was of this release; Xerox has become the latest technology heavyweight to issue a major round of layoffs.The company revealed on Thursday that the sagging economy has forced a reorganisation plan which could see some 3,000 jobs eliminated. Such a cut would remove five per cent of Xerox's total workforce.
Global Imaging Systems, Inc. is owned by Xerox, Global has agreed to buy Comdoc.
For the sake of almost 3,000 people who lost their jobs, was this a good move by a Xerox owned company? Heck in Rochester the other day, Xerox laid off 40% go here for rest of blog
quote:Summary: This was one of Ricoh's largest dealers in the North East, another hit for them and probably all the more reason to keep expanding direct. Canon? Where were they, you haven't heard squat from them since Ricoh bought IKON except for a purchase of NewCal in California.
Canon seems to be going the route of signing up new dealers up to this point, which is likely being done quietly.
This past year and 1/2 has been crazy....
The industry is going to continue to contract and over the next 3-5 years more and more dealers are going to be gobbled up by the manufacturers. In 10 years I doubt there will be many dealers left; it's a matter of economics. Frankly, I've worked for both the dealership and manufacturers side; it's been my experience that dealers either can't expend the resources to support their business or they don't want to spend the money necessary to provide the resources for their sales teams. Because of that I feel the manufacturers see no other way to capture as many clicks as possible then to be the first source for the client. Technology has demanded a new business model that, in my opinion, dealers are willing to invest in.
Think about trying to secure and account and the CEO, CFO or owner asks this question to the dealer sales person.
How do I know that your company will not be bought out by or sold? I for one, would feel more comfortable dealing direct, knowing that my product will always be serviced no matter what happens.
I will say that it was amazing how little time it took for our competitors to hit the phones to our currents and start the negative fear mongering. Oh well, that's the nature of the beast. A few years from now when the dealer network is nearly extinct we'll all look back at this and laugh.
Good to hear from you and I hope and others made out well with the purchase. I'm sure all of us at the P4P wish you all great things.
Dealer Network being extinct could be a real possiblity.
Xerox is prudent to eliminate positions that efficiency has made unnecessary, and to spend funds to grow the business by acquisition.
I cut the grass in my front yard and water the vegetables in the back, but that is not an inconsistent strategy.
quote:Originally posted by JT:
I will say that it was amazing how little time it took for our competitors to hit the phones to our currents and start the negative fear mongering.
Well, that's what I'd be doing. Are you happy with your current equipment? You know (Insert Dealer name here) is a (insert manufacturer name here) company now, they won't be selling or supporting that anymore. They'll probably try to move you into one of their machines when your contract is up or they can't service this one anymore.
Yup, well, here's my card, give me a call if you have any problems, I'm here to help
quote:I don't think it's appropriate to view the ComDoc acquisition as somehow counter to the spirit of the 3,000 jobs eliminated by Xerox.
Well. what if Ricoh laid off 3,000 workers and and IKON (a Ricoh company) went out and bought a 150 million dealer?
Just my $.02.
That would be similar. Ricoh, in their judgment, would have identified 3,000 employees who represented more cost than value.
And Ikon would have found a $150M dealer it could buy for less than it's future value.
It would represent at best two independent good business decisions, and at worst a trade-off... let's cut 3,000 overhead positions and add $150MM in revenue...
Most owners will disagree with that.
The layoffs and the purchase are mutually exclusive