Toshiba TEC Expects to Generate New Business Opportunities Based on the Deal

 
 
By Darryl K. Taft  |  Posted 2012-04-17 Email Print this article Print
 
 
 
 
 
 
 


€œThe opportunities in retail store solutions are expected to grow by increasing demand in POS systems. In addition, demand for multichannel integration and enhancement of store back-office management accelerates further expansion of sales,€ said Mamoru Suzuki, president and CEO of Toshiba TEC, in a statement. €œToshiba TEC will become the world€™s foremost point-of-sale provider capable of providing products and services at the same level of high quality. It also will allow Toshiba TEC to expand its global point-of-sales business through a combination of the competitive product lineup and a worldwide network proven by Toshiba TEC€™s and Retail Store Solutions€™ history of the business.€

The acquisition will enable Toshiba TEC to seek expanded opportunities to deliver new value to customers, including mass merchandisers, specialty and convenience stores, and fast food restaurants. Toshiba TEC also expects to generate new retail business opportunities based on synergies with its printing solutions business combined with the RSS sales network.

€œToshiba warmly welcomes this agreement,€ said Norio Sasaki, president and CEO of Toshiba, in a statement. €œToshiba TEC enjoys a strong presence in retail store solutions in Asia-Pacific, including Japan, and we are confident that this acquisition will support expansion in North America, Europe and the emerging economies. I also expect this significant step to support innovation and the creation of new business opportunities for Toshiba Group.€

While the transaction is being completed, the companies will continue to operate independently. After the transaction closes, IBM will continue to provide maintenance services to RSS clients under a multi-year services agreement. Retail Store Solutions customer service and product availability will continue as usual as the RSS operations are integrated.

IBM said a new holding company will be established in Japan. This company will hold the equity of a number of companies organized in countries around the world. Toshiba TEC will acquire an 80.1 percent stake in this holding company, and in order to promote a smooth transfer, IBM will hold a 19.9 percent stake in the holding company. Eventually, the holding company will become a wholly owned subsidiary of Toshiba TEC. The new companies, including the holding company, will continue to operate the Retail Store Solutions€™ business worldwide as Toshiba TEC€™s core retail point-of-sale solution affiliates, IBM said.

Steven D. Ladwig, currently general manager, IBM Retail Store Solutions, will become the CEO of the new U.S. company, with headquarters in Raleigh, N.C.

A portion of the aggregate purchase price will be paid on the closing date and on the first anniversary of the closing. The remaining portion will be paid on the third anniversary in exchange for IBM€™s 19.9 percent equity interest.

The Retail Store Solutions business, which had revenue in 2011 of approximately $1.15 billion, has approximately 1,000 employees plus maintenance specialists.

 



 
 
 
 
Darryl K. Taft covers the development tools and developer-related issues beat from his office in Baltimore. He has more than 10 years of experience in the business and is always looking for the next scoop. Taft is a member of the Association for Computing Machinery (ACM) and was named 'one of the most active middleware reporters in the world' by The Middleware Co. He also has his own card in the 'Who's Who in Enterprise Java' deck.
 
 
 
 
 
 
 

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