Friday, June 17, 2011

Where Did The IMB in InfoPrint Go?

In the world of high production printing solutions the InfoPrint has been a leader since it conception.   While some mistakenly think the InfoPrint is still an IBM product, you might want to think again.  The product that was created by IBM is now being produced and sold and distributed by Ricoh, leaving many wondering, “Where did the IBM in InfoPrint go?”


IBM’s first buyout occurred back in 1991 and involved IBM's typewriter and keyboard business.  At that time IBM decided it needed to divest its printer and printer supply operations to an investment firm Clayton & Dubilier.  IBM sold its imaging division in a leveraged buyout but retained a 10 percent equity interest in the new company and still markets many of its products today under the IBM name.  The company that bought IBM’s printing division would later be named Lexmark because IBM had a facility in Lexington, Kentucky that made printers.  In 1995 Lexmark became publicly traded and went on to become a fortune 500 company that we all know.     

IBM’s second buyout occurred more recently in 2007 under different circumstances and involved IBM’s Printing Systems Division.  IBM decided to go into a joint venture with Ricoh.  Together they created the InfoPrint Solutions Co.  Over the next 3 years the two companies would work closely together to make it a smooth transition from IBM to Ricoh.  At the closing of the 3 years in July 2010 IBM would receive $725 million and Ricoh would own 100 percent of the InfoPrint Solutions Co
Other buyouts have occurred over the years that have not involved IBM’s printing divisions.  In 2004 IBM decided to sell its PC division to Lenovo which made it the third-largest PC maker in the world while still allowing IBM to keep an 18.9% stake in its business.  In 2002 IBM decided to sell its HDD division to Hitachi for $2.05 billion. 
While this definitely hasn't been the first time IBM has sold off a division of its company it won’t be the last either.  IBM has made a habit over the years of creating huge business through its technological innovation only to sell it off to go and create something new.    But as long as IBM keeps making smart decision when choosing partners such as Lenovo, Lexmark and Ricoh, we know the future is bright for products like the InfoPrint because while many may not have known where the IBM in InfoPrint went, we all know where IBM has going. 
The Bradshaw Group is a Global Supplier of Network & Production Printing Supplies, Parts, and Refurbished printers. Bradshaw Group partners with the world’s largest OEM’s and is the only distributor with direct IBM/InfoPrint, Oce and HP relationships.

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