IBM launches Ricoh printer spin-off

IBM expects that 1,000 of its employees will move to the new business

A company formed from IBM's printing division has begun operation as a separate entity. 

InfoPrint Solutions was announced in January, when IBM revealed that it would partner with Ricoh to spin off its Printing Systems Division into a new company that would progressively be absorbed into Ricoh.  

Big Blue will continue to offer InfoPrint Solutions products to its customers and will provide support for the new company, which will inherit a customer base that generated more that $1bn in revenue last year.

IBM also expects that as many as 1,000 of its employees may move to the new business.

"With this launch, we have created a billion-dollar enterprise with the backing of two undisputed industry leaders. Together, we will drive the next generation of innovation in output solutions," said former IBM Printing Systems head Tony Romero, who will serve as chief executive of InfoPrint Solutions.

Ricoh has paid IBM $725m for a 51 per cent stake in the new entity, as well as prepayment for the remaining 49 per cent transferred over the next three years and "certain royalties and services" to be provided by IBM.

Ricoh hopes that the acquisition will allow it to tap into IBM's status as an enterprise computing heavyweight and give the printing company access to Big Blue's vast customer base.

"Today is an historic moment for IBM and Ricoh and more importantly, an industry first," declared Norio Tanaka, corporate senior vice president of the Production Printing Business Group at Ricoh.

"The creation of Infoprint Solutions brings together the best of two industry leaders, and greatly enhances the Ricoh portfolio of offerings."