Cleary Gottlieb is representing long-standing client Ricoh Company, Ltd. in its strategic alliance and eventual purchase of IBM’s printing systems division. On January 25th, Ricoh and IBM announced the formation of a joint venture, Infoprint Solutions Company. Ricoh will initially own 51% of Infoprint and will acquire the remaining 49% over the next three years. At the first closing, Ricoh will pay $725 million for the initial 51% investment and prepayment for the remaining 49%, plus assumption of certain liabilities. Final consideration will be determined at the end of a three-year earn-out period. The initial closing of the transaction is expected in the second quarter of 2007.
Ricoh is a global leader in digital office solutions. IBM is the world’s top provider of computer products and services. IBM and Ricoh have been strategic partners for 20 years. Imprint Solutions will combine IBM’s enterprise printing experience with Ricoh’s office solutions leadership, enabling the company to become a leading provider of output solutions.