By Lisa Kerner
Charlotte, N.C., Aug. 27 - IKON Office Solutions Inc. agreed to be acquired by Ricoh Co., Ltd. for $17.25 per share, or approximately $1.6 billion in cash, the companies announced on Wednesday.
The per-share offer price is a 33% premium over IKON's trailing 60-day average stock price as of market close on Tuesday, IKON chairman and chief executive officer Matthew J. Espe said in a company news release.
According to IKON, the merger agreement follows the company's formal process to evaluate alternatives.
The companies' boards of directors have approved the transaction, which is slated to close in the fourth quarter of 2008, the release stated.
IKON will become a Ricoh subsidiary and maintain is headquarters location in Malvern, Pa.
The merger is expected to significantly enhance Tokyo-based Ricoh's global presence.
Goldman, Sachs & Co. advised IKON. Morgan Stanley is advising Ricoh.
Ricoh is a digital office solutions provider, offering a range of networked products, printers, fax machines, semiconductor-related products and digital cameras. The company has 83,400 employees worldwide.
IKON, with 24,000 employees in North America and Western Europe, is an independent channel for document management systems and services.
Acquirer: | Ricoh Co., Ltd.
|
Target: | IKON Office Solutions Inc.
|
Announcement date: | Aug. 27
|
Transaction total: | $1.6 billion
|
Price per share: | $17.25
|
Expected closing: | Fourth quarter of 2008
|
Stock price for target: | NYSE: IKN: $15.56 on Aug. 26
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.