After Ricoh bought IKON, with the intent of strengthening Market Share and distribution by becoming a 'direct' operation, ComDoc knew that Ricoh would never buy them. Moreover, as the ComDoc employee / owner stated above, they were no longer getting the same support from Ricoh after they bought IKON. ComDoc was then prime for purchase by Global and Ricoh loses probably close to $50M in revenue. I would think Ricoh must now focus even more attention on the IKON acquisition to make it somewhat successful, yet at what expense to Dealers?
quote:Originally posted by JasonR:
Hrmm. Since Global is owned by Xerox and Xerox is a public company, won't the costs for this purchase be listed in the annual report?
Or will there just be a line saying Global "lost" X million dollars this year due to expenses?
Usually it will be blurred in with their total acquisition/divestiture activity, which should be considerable.
The purchase price is now "known" on the street, and it's enough to say that the poll above picked the best of the available answers, though several additional higher options would have been helpful.
So, how much was paid for Comdoc??
Enough to make the employee owners very happy.
Best of luck to Xerox - ComDoc in attempting to flip the Ricoh base to Xerox machines. Ricoh will take away financial support from Dealers to support IKON and RBS with winning the business, which has been the long-term strategy. The ComDoc situation has only accelerated the need to support IKON and RBS and move away from Independent Dealers. Art has found examples in his neck of the woods already and the markets covered by IKON and RBS that ComDoc possessed, will be attacked with aggressive pricing to simply win the deals.