logo
Share SHARE
FONT-SIZE Plus   Neg

IBM To Sell Point-of-sale Business To Toshiba For $850 Mln - Update

International Business Machines Corp. (IBM) and Toshiba TEC Corp. have signed a definitive agreement for Toshiba TEC to acquire IBM's retail store point-of-sale solutions business for about $850 million.

Toshiba TEC, a subsidiary of Toshiba Corp. (TOSBF.PK), makes point-of-sale systems and related technology for retailers.

The business IBM is selling generated around $1.15 billion in revenue in 2011 and has about 1,000 employees worldwide, in addition to maintenance specialists.

As part of the transaction, Toshiba TEC will enter into a multi-year agreement with IBM in which it will become an IBM Premier Business Partner for Smarter Commerce.

This agreement will help ensure that IBM's portfolio of enterprise-level Smarter Commerce solutions and services and Toshiba TEC's customer-facing retail store point-of-sale solutions are available to customers to meet the increasing demand for multi-channel commerce.

As part of the deal, a new holding company, which will hold the equity of a number of companies organized in countries around the world, will be established in Japan. Toshiba TEC will acquire an 80.1 percent stake in this holding company and IBM will hold a 19.9 percent stake to promote a smooth transfer.

Eventually, the holding company will become a wholly-owned subsidiary of Toshiba TEC. The new companies, including the holding company, will continue to operate Retail Store Solutions' business globally as Toshiba TEC's core retail point-of-sale solution affiliates.

Steven Ladwig, currently general manager of IBM Retail Store Solutions, will become the chief executive officer of the new US company with headquarters in Raleigh, North Carolina.

The transaction is expected to close late in the second quarter or early in the third quarter. When the deal is complete, Toshiba TEC would become the world's foremost retail point-of-sale systems company, offering hardware, software and integrated in-store solutions.

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

Mamoru Suzuki, president and CEO of Toshiba TEC, said, "The opportunities in retail store solutions are expected to grow by increasing demand in POS systems. In addition, demand for multi-channel integration and enhancement of store back office management accelerates further expansion of sales."

IBM closed on Monday at $202.72, compared to the previous close of $202.80, on a volume of 3.83 million shares.

Toshiba TEC shares climbed 6.9 percent in Tokyo to close at 327 yen on 6.04 million shares.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Bank of Nova Scotia or otherwise known as Scotiabank, Friday reported lower net profit for the third quarter, in the absence of a year-ago gain. Earnings per share, however, came in line with the Street view. Further, the company said it raised its quarterly dividend by 2 cents. Non-traditional discount and variety stores operator Big Lots Inc. (BIG) Friday reported a decline in net profit for the second quarter, while net sales grew 1.2 percent from the prior year. Comparable sales for the quarter increased 2.8 percent. Google has rejected the European Union's charges that it abused its market power and the demanded that it change the way it ranks online comparison shopping services in its search results, setting up a potentially long legal battle with the EU regulator empowered to levy billions of euros in fines
comments powered by Disqus
RELATED NEWS
Trade IBM now with 
Follow RTT