Lot's of buzz as expected - some tid bits:
It only took a few days, current IKON employees are starting to weigh in by articulating there emotions and thoughts on their personal blogs.
As well as some astute observations by some outside our industry.
Just a few to date:
From, Jason Found This Interesting:
"...So I used to tell my wife, "If I had to leave IKON for another copier related company... it would probably be Ricoh." What I didn't totally anticipate was Ricoh coming to me..."
From The Wallstrip Blog:
"The Dutch take over our beer, now the Japanese take out office solutions. What’s wrong with this picture?"
From "The Akbas Post:
"In the short-run, Canon is the biggest looser but in the long run HP will be. However, the biggest winner will be Xerox; It will help defend its turf against the print-centric assault by HP while aggressively targeting IKON-Canon customers during merger integration via its subsidiary of Global Imaging Systems. Having picked a much less problematic dealer group (Global vs IKON) to acquire, Xerox will have a window of opportunity to better compete against Ricoh particularly in the US middle market."
And from Corey's Blog:
"It is interesting to me Ricoh buys IKON for $1.6 Billion or $17.25 per share. A little over a year ago Xerox bought Global Imaging for $1.5 Billion or $29 per share."
And from itbusiness.ca:
"The Ikon acquisition should have minimal impact on Ricoh's dealer and IT channel partners", says Russell Marchetta, manager of corporate and public relations with Ricoh.
He notes Ricoh and Ikon have been partners for more than 20 years and they've always considered Ikon a separate distribution channel within their organization, in addition to the independent dealers and their direct business. "
Monday, September 1, 2008
HP Layoffs -
From the "Job Cuts Taking Place at Hewlett-Packard's Boise-Based Imaging and Printing Group"
"In what one employee, who asked his/her name be withheld, has called "Black Monday," a round of job cuts is taking place at Hewlett-Packard's Boise-based Imaging and Printing Group today, part of the company's global reorganization of the division..."
HP spokesman Scott Stalla issued this statement:
"As part of the HP Imaging and Printing Group's (IPG) continued Print 2.0 transformation, the business announced plans in June 2008 to realign and streamline its organization by reducing the number of its global business units from five to three customer solutions- oriented businesses. The realignment of IPG's business entails shifting resources from slower growing businesses to new business opportunities. In some cases, parts of IPG's business will experience reductions while investments will be made in high growth segments of the business. These decisions will be made at the level of the global business unit and are not specific to HP sites. Consistent with its transformation, IPG will continue to proactively manage the challenges of the current market and consider changes that will position the business to win today and in the future."
"...The reorganization of HP's Imaging and Printing Group was made public in June, when statements were issued that the company would reduce its five IPG groups to three. Layoffs began last week at HP's facilities in Corvallis, Ore. and Vancouver, Wash., where about 300 positions were eliminated..."
"In what one employee, who asked his/her name be withheld, has called "Black Monday," a round of job cuts is taking place at Hewlett-Packard's Boise-based Imaging and Printing Group today, part of the company's global reorganization of the division..."
HP spokesman Scott Stalla issued this statement:
"As part of the HP Imaging and Printing Group's (IPG) continued Print 2.0 transformation, the business announced plans in June 2008 to realign and streamline its organization by reducing the number of its global business units from five to three customer solutions- oriented businesses. The realignment of IPG's business entails shifting resources from slower growing businesses to new business opportunities. In some cases, parts of IPG's business will experience reductions while investments will be made in high growth segments of the business. These decisions will be made at the level of the global business unit and are not specific to HP sites. Consistent with its transformation, IPG will continue to proactively manage the challenges of the current market and consider changes that will position the business to win today and in the future."
"...The reorganization of HP's Imaging and Printing Group was made public in June, when statements were issued that the company would reduce its five IPG groups to three. Layoffs began last week at HP's facilities in Corvallis, Ore. and Vancouver, Wash., where about 300 positions were eliminated..."
Friday, August 29, 2008
Espe, other top Ikon Office execs to get big retention bonuses
From Philly.com
Friday August 29, 2008
"When Ricoh Co. Ltd. agreed to buy Ikon Office Solutions Inc. for $1.6 billion earlier this week, one thing that was clear was that Ikon management was going to stay on to run the big office equipment distribution business based in Malvern.
They have a million reasons to do so.
Under executive retention agreements, CEO Matthew J. Espe and five other senior executives would receive some hefty payments if they stay a full two years following the sealing of the deal.
The maximum Espe could receive is $8,630,400 over two years. He could stay as little as six months following the closing of the acquisition and get $1,294,560. The agreement is structured in a way that escalates payments the longer Espe stays. So $1,726,080 after 12 months, $2,157,600 after 18 months, and $3,452,160 after 24 months.
Retention bonuses are common in big deals like this, because often the last thing an acquirer wants is to be handed the keys and watch the top management wave good-bye.
According to a filing with the Securities and Exchange Commission, Ikon says these retention agreements replace severance pay the executives would have been entitled to receive. So they turned severance pay into incentive pay.
Here are the maximum payouts for other Ikon executives:
* Robert F. Woods, Ikon's chief financial officer, $2,122,375;
* Jeffrey Hickling, its senior vice president of operations,$1,850,625;
* David Mills, president of Ikon Europe, 906,144 pound sterling.
The retention agreements for Mark A. Hershey, Ikon's general counsel, and Mark Bottini, senior vice president of US field sales, were not attached to today's filing."
Click to email me.
Friday August 29, 2008
"When Ricoh Co. Ltd. agreed to buy Ikon Office Solutions Inc. for $1.6 billion earlier this week, one thing that was clear was that Ikon management was going to stay on to run the big office equipment distribution business based in Malvern.
They have a million reasons to do so.
Under executive retention agreements, CEO Matthew J. Espe and five other senior executives would receive some hefty payments if they stay a full two years following the sealing of the deal.
The maximum Espe could receive is $8,630,400 over two years. He could stay as little as six months following the closing of the acquisition and get $1,294,560. The agreement is structured in a way that escalates payments the longer Espe stays. So $1,726,080 after 12 months, $2,157,600 after 18 months, and $3,452,160 after 24 months.
Retention bonuses are common in big deals like this, because often the last thing an acquirer wants is to be handed the keys and watch the top management wave good-bye.
According to a filing with the Securities and Exchange Commission, Ikon says these retention agreements replace severance pay the executives would have been entitled to receive. So they turned severance pay into incentive pay.
Here are the maximum payouts for other Ikon executives:
* Robert F. Woods, Ikon's chief financial officer, $2,122,375;
* Jeffrey Hickling, its senior vice president of operations,$1,850,625;
* David Mills, president of Ikon Europe, 906,144 pound sterling.
The retention agreements for Mark A. Hershey, Ikon's general counsel, and Mark Bottini, senior vice president of US field sales, were not attached to today's filing."
Click to email me.
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