(RTTNews) - Japanese imaging equipment maker Canon Inc. (CAJ: News ) and Dutch printer manufacturer Océ N.V. Monday revealed a conditional agreement by which Canon will acquire all ordinary shares of Océ through an all cash public offer of EUR 8.60 per share or about EUR 730 million. Canon's fully self-funded cash offer marks a premium of 70% over Océ's closing share price on November 13 and represents a 137% premium over Océ's average share price for the last 12 months.

Through the deal, Canon and Océ aim to create the overall No. 1 presence in the printing industry, utilizing the enhanced scale, innovation and client servicing. According to the companies, they have complementary fit in product mix, channel mix, R&D, and business lines that could lead to an outstanding client offer spanning the entire printing industry. Additionally, the combination is expected to have leading positions in the Small Office/Home Office, office, production and wide format segments, offering a wide range of products and services.

Furthermore, under Phase III of Canon's Excellent Global Corporation Plan, launched in 2006, Canon aims to join the ranks of the world's top 100 companies in terms of key measures of business performance. As one of the strategies to realize this goal, Canon aims to achieve the overwhelming No. 1 position worldwide in all of its current core businesses. Océ has direct sales and service network in 32 countries, which would provide additional sales and service support for Canon-brand products. Canon could also benefit from the addition of Océ's production and wide format printing line-up, along with the R&D synergies.

According to Canon's President and COO Tsuneji Uchida, "We are delighted to welcome Océ, the ideal partner in every respect, into the Canon Group. Through the merger of Canon and Océ, we believe that we will be able to realize clear benefits, not only in the area of R&D, but also in terms of product mix and marketing and are confident that this winning combination will contribute greatly to our goal of becoming the overall No. 1 presence in the printing industry."
Océ's CEO Rokus van Iperen said, "There is a great fit between our companies, which share similar values and a strong commitment to technology and innovation... This is the best possible combination in the consolidating global printing industry and will deliver scale in R&D, manufacturing and distribution. The combined organization provides us with access to a huge sales network in Asia as well as mutual cross selling opportunities in Europe and the United States."

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