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TOKYO, Jun 13, 2012 (BUSINESS WIRE) -- OKI Data Corporation and Toshiba Tec Corporation today announced the conclusion of a basic agreement to jointly develop multifunction printers (MFP). The companies plan to initiate full-scale deployment of products and technologies to target the global market, such as utilizing digital LED printheads made by OKI Data for Toshiba Tec products.

Capitalizing on compact and remarkably reliable printers based on its core LED technologies, OKI Data has achieved notable successes in various global markets, including Japan, Europe, and Latin America. Toshiba Tec has also won high marks for its high-quality A3 MFPs, and brings to the table a strong track record in North America, Europe, and China. The agreement for joint development is based on the combined strengths of the two companies, with each company excelling in complementary areas.

With the full-scale deployment of joint development, the two companies will develop products by pooling their technological strengths and complementary core technologies to contribute rapidly to each business. OKI Data plans to double sales of Managed Print Services based on its wide range of high-speed, highly-functional MFP offerings. Toshiba Tec will strengthen its sales by adding own-developed A4 size products to its product portfolio.

The global printer market has shown ever-growing need for services that enhance productivity and reduce costs, such as Managed Print Services. For the customer base targeted by the partner companies, these trends spell the need for a comprehensive line of product offerings that meet a broad range of office printing needs. To meet this need, the partners must overcome the challenges of achieving the high technological standards required to create a diverse, up-to-date product line, while minimizing development period and cost.

[Basic agreement]

1. Joint Product Development

The two companies will jointly develop a competitive A4-size MFP, ideal for Managed Print Services (MPS). OKI Data's compact electrophotographic unit will incorporate controllers provided by Toshiba Tec.

2. Reciprocal Supply of Core Technologies

Toshiba Tec will develop compact, high-precision MFPs with digital LED printheads manufactured by OKI Data. Toshiba Tec's full-color e-STUDIO 2050C A3 MFP announced(1) for the Japanese market uses OKI Data LED printheads, allowing it to achieve unprecedented compact dimensions and dramatically lower power requirements. OKI Data will also draw on Toshiba Tec's Open Platform technology to provide a wide range of Managed Print Service solutions.

(1) Available for the Japanese market from July 2012

About OKI Data Corporation

OKI Data Corporation specializes in the design, development, manufacture, and marketing of business printing solutions that empower organizations to communicate more effectively. A subsidiary of Tokyo-based OKI Electric Industry (established in 1881 as Japan's first telecommunications manufacturer), OKI Data fields representatives in 120 countries to offer innovative, leading-edge products and services worldwide. For more information, please visit http://www.okiprintingsolutions.com/

About Toshiba Tec Corporation

Toshiba Tec Corporation is engaged in digital product business of the TOSHIBA group. Expanding its operation for the whole world, the range of products is formed by POS (Point of Sales) systems for retail industry, in particular keeping the top market share in Japan, and Barcode printing and RFID (Radio Frequency Identification) system for manufacturing, logistics and retail industry, MFP (Multi-function Peripheral) for the office use. Toshiba Tec keeps creating products at any time for efficient business processes and innovated new value with customers in mind.

Notes:

-- The names of the companies and products mentioned in this document are the trademarks or registered trademarks of the respective companies and organizations.

SOURCE: OKI Electric Industry
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One observation. In the Canadian market both OKI and Toshiba have been low price vendors and for price sensitive purchasers often can win the day. Combining them could push prices lower for others as well. Up to now Toshiba had trouble competing for deals with mixed A3, A4 and printer components. Adding OKI products to their mix could make them more competitive.
Rumors have swirled for years on Toshiba's exit of the MFP industry. Inspite..... of their recent and aggressive dealer acquisitions. Neither entity is strong enough to stand on its on. Especially due to the consolidation the industry has already seen. Ricoh/Ikon, Canon/OCE, Konica/Minolta, etc. I agree that both have been low price leaders in the US market as well, and the marriage is a good one. This is the start of Toshiba's exit, and eventual sale to Oki Data. Oki Data just didnt have the $ to pull it off yet. Toshiba is approx. a $50 billion company, and MPF's comprise a small % of overall sales. Like Panasonic (similarily sized company), MFP's have been a distraction to their core businesses. The time to sell is now, and who better to gain than Oki Data a one trick pony with only A4 printers/mfp's.
On that last post, you can dream in technicolour but Toshiba is not leaving the MFP business. The recurring revenue on parts and supplies is too good.

A lot of the consolidation of the larger players was due to long term poor management decisions and unprofitable business models.

Although MFPs are a small part of Toshiba Corporation's sales, it is the largest and most profitable part of Toshiba TECs sales, a Toshiba subsiduary corporation.
Last edited by SalesServiceGuy
Probably a good move by both parties, I remember being told raw manufacturing costs of LED devices is less than traditional laser but agree there is very little if any benefit over laser.

In the current market you need to provide end to end single function print & MFD in A4/A3 devices with the same user interface, drivers etc so I can see a single badge rapidly approaching.

Also by the way HP devices are shipping with SSD's now
A few notes:

Toshiba has been rebranding OKI's A4 LED MFPs in Europe for years
Oki has been rebranding Toshiba's A3 MFPs in the US and Europe for years
This may lead to some type of M&A in the future, but its not part of the current plan
This is intended to be a way for BOTH members to stay in the market by combining R&D and manufacturing resources
Vince:

You're right, I remember when that was announced the Konica and Minolta would share technology and maybe a year or two later was the announcement that they would merge. However Konica & Minolta had a lot more in common with film, copiers and cameras to pull off a complete merger. If I were a betting man I believe that Oki will acquire the Toshiba brand for Imaging within 12 months or so.
Art,

Now a days just because one company "Acquires" another company it doesn't mean that the company getting acquired won't end up running the company that "Acquired" them.

Your Honor I would like to submit the following evidence...Ricoh Acquired Lanier, Ricoh Acquired Ikon, Canon Acquired Oce...

Give me the good old days when the company that bought your company ended up running the company they bought and not the other way around.

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