Canon has agreed to acquire Dutch copier and printer maker Oce for €730m. The companies have reached conditional agreement to combine their printing activities through a fully self-funded, public cash offer by Canon for all the Shares of Oce.
Canon plans to offer €8.60 per share of Oce, which represents 70% over the closing share price on November 13, 2009 and 137% to the average closing price of Oce’s shares over the last 12 months.
Tsuneji Uchida, president and COO of Canon, said: Through the merger of Canon and Oce, we believe that we will be able to realise 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.
Through the deal, the companies aim to create the number one presence in the printing industry. The combination will capitalise on complementary fit in product mix, channel mix, R&D, and business lines, the companies said.
Up on completion of the merger, Oce will remain a separate legal entity and will become a division within Canon with headquarters in Venlo (the Netherlands). Oce will be responsible worldwide for wide format, commercial printing and business services and its office activities will be integrated in Canon’s office imaging products division (OIP). Canon’s large format printing will functionally be integrated in the Oce production printing division over time.
Reportedly, the Oce division will report to the Canon Board and will lead the R&D and manufacturing for its businesses. The integration of both Canon and Oce businesses will take place over the coming three years.
Rokus van Iperen, CEO of Oce, said: The combined organisation provides us with access to a huge sales network in Asia as well as mutual cross selling opportunities in Europe and the United States. Our customers will benefit from an outstanding product and services offering and our employees will be offered appealing development opportunities.
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