Ricoh, IBM Form Joint Venture

Long a leader in digital office solutions, Ricoh is making a move into the production printing environment. It has formed a joint venture company with IBM, based on IBM’s Printing Systems Division. Ricoh will own 51 percent of the joint venture, to be called the InfoPrint Solutions Co.

“For Ricoh it signals the beginning of new stage in our strategy for global growth,” said Masamitsu Sakurai, Ricoh’s president and CEO, speaking in Japanese at a New York press conference. “We believe we can adopt our existing technology and production known-how to the production printing field.”

Trends like variable data printing and print on demand prompted Ricoh to make this move, he said.

Ricoh will acquire the remaining 49 percent of the joint venture over the next three years, which will help smooth the transition.

IBM, which will bring in $725 million in cash through this deal, decided to sell its Printing Systems Division when it became clear the company would not be able to make the necessary changes to nurture and grow the business, said IBM Executive Vice President Nick Donofrio.

“It’s not a bad business,” he hastened. “It simply needs a new direction.” Ricoh’s expertise in small and medium enterprises, he said, will enable the business to expand.

Masamitsu Sakurai agreed: “I am confident that we are poised to take a sizable share of this market,” he said. “We will invest the necessary resources to make InfoPrint Solutions Co. into a core business.”

InfoPrint Solutions is expected to begin operations with about 1,200 employees. IBM will continue to provide maintenance services to InfoPrint Solutions Co. clients under a service agreement.

InfoPrint Solutions’ worldwide headquarters will be in Boulder, Colo. Tony Romero, general manager of the IBM Printing Systems Division, will head the new company as president and chief executive officer.