Canon Inc agreed to buy Oce NV for about 730 million euros (US$1.1 billion) in cash to expand its printer operations and help it widen its lead in the global market for office equipment.
Canon will pay 8.60 euros a share, or 70 percent higher than Venlo, Netherlands-based Oce’s last closing price, Tokyo-based Canon said in an e-mailed statement yesterday. Integrating the two companies will probably take about three years, the statement said.
The purchase paves the way for Canon to share Oce’s research, marketing and manufacturing as it seeks to become the leader in the global printing industry.
Ricoh Co, the second-largest maker of office equipment in Japan, last year agreed to buy Pennsylvania-based Ikon Office Solutions Inc for US$1.62 billion to expand sales and services operations in the US.
“Canon probably has been considering a counterattack ever since Ikon was taken over by rival,” said Tetsuya Wadaki, a Tokyo-based analyst at Nomura Holdings Inc.
Canon needs to strengthen its US operation to win market share in the region to compete against firms such as Xerox Corp, he said.
Canon agreed to pay 65 million euros to buy Oce’s preferred shares, the statement said.
Canon also plans to refinance short and long term debt of Oce if needed, it said.
The deal highlights the increase in consolidation in the printing industry.
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