RAMSEY, N.J. April 08, 2008 -- Konica Minolta Business Solutions U.S.A., Inc. (Konica Minolta), a leading provider of advanced imaging and networking technologies from the desktop to the print shop, today announced that the company has signed a definitive agreement with Danka Business Systems PLC (Danka; OTCBB: DANKY.PK; LSE:DNK.L), one of the largest independent suppliers of office imaging equipment, software, support, and related services and supplies in the United States, enabling Konica Minolta to acquire Danka Office Imaging Company (DOIC), a wholly-owned U.S. operating subsidiary of Danka.
DOIC serves over 45,000 customers across the United States. DOIC generated approximately $450 million in total revenue for the fiscal year ending March 31, 2007. The acquisition is expected to significantly increase Konica Minolta's U.S. distribution to enterprise customers while expanding its range of services and support capabilities.
"Konica Minolta's acquisition of DOIC will further enhance our leadership in the color and high volume production print markets while complementing our overall growth strategy with our independent dealers and branch network." said Jun Haraguchi, President and CEO of Konica Minolta Business Solutions U.S.A., Inc. "We're excited about the prospects that this strategic acquisition will create, and believe the combined strength of the new organization will be beneficial to our customers, the DOIC customer base and the DOIC employee family."
Under the terms of the agreement, the total purchase price is expected to be approximately US $240 million. Konica Minolta will begin servicing network-ready multifunctional products (print, copy, fax, and scan all in one system), and network printers, in DOIC markets beginning in mid-2008.
The acquisition of DOIC is subject to customary regulatory and other closing conditions, in both the United States and the UK, including the approval of the transaction by Danka's shareholders.
Upon the consummation of the transaction, DOIC will be a wholly owned subsidiary of Konica Minolta, will maintain its current offices in St. Petersburg, Florida and will operate to serve DOIC current distribution network.
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