japans-ricoh-buys-us-ikon

Japan's Ricoh buys US Ikon

Ricoh increases its presence in the US and Europe by acquiring Ikon for $1.62 billion, and gives Ikon's largest shareholder a healthy return on investment.
JapanÆs Ricoh Company is buying Pennsylvania-based Ikon Office Solutions for $1.62 billion, in a deal cheered by RicohÆs shareholders and analysts.

The offer price of $17.25 per share represents a 33% premium over IkonÆs 60-day average stock price up to August 26 and a premium of 11% on Tuesday's close. For fiscal 2007 Ikon registered revenues of $4.2 billion, down 1.4% year-on-year. But Ikon posted an Ebitda from recurring operations of $203 million and a 4.9% operating margin, up from 4.1% the previous year.

Ricoh is paying a revenue multiple of 0.38 times trailing revenues. Lehman Brothers research issued yesterday estimates Ricoh is paying 16.9 times forward 2009 earnings and commented that RicohÆs valuation of...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222