The “$64,000 question” (actually The $16,500,000 question) is – What is Kinko’s getting for its money?

On Tuesday, March 3, Kinko’s announced a merger agreement with ImageX for approximately 31.1 million outstanding shares at $.512 per share, cash. Let’s go through the asset list and look carefully at what each item means – or can mean – for Kinko’s.

1) A company with cash and cash equivalents of $12.4 million and no real debt. If one puts the cash and cash equivalents against the $16.5 million offer, Kinko’s will, in effect, be acquiring all ImageX assets and intellectual property for about $4.1 million. (Note that these figures are according to the most recent SEC filing and today's cash and cash equivalents total is not known.) Plus, Celartem Technology acquired Extensis and still owes ImageX $2.0 million due over the next two years if certain revenue targets are met. The opportunity to acquire ImageX’s assets, intellectual property and customer base for an extremely good price with no debt allows Kinko’s to enter the online print market for business stationery a second time with the bases loaded. In 2000, Kinko’s acquired LivePrint.com for about $40 million and launched Kinkos.com, its first attempt at entering the online print market. Kinkos.com was closed down in early 2001.