Tuesday, April 03, 2007

Xerox Global Imaging

Xerox has become the latest digital copier vendor to make an acquisiton to beef up its direct sales efforts. Yesterday, Xerox announced plans to acquire Global Imaging Systems for $1 billion. Global Imaging is a dealer roll-up founded in the 1990s by former Danka and Alco executive Thomas Johnson. It reportedly has a current run rate of around $1.5 billion. Curiously, it does not currently carry Xerox products. You might say Xerox is buying some serious market share with this acquisition.

Xerox competititors like Toshiba and Sharp have also been rolling up dealerships recently, and Ricoh recently announced a major re-org of its sales channels. It's our theory that as copier vendors are forced into solutions sales, they realize they need more control over their salespeople and buying dealers are one way to do this.

Oh yes, and we had a recent exchange on the blog about "the Great American Copier company," in which I proposed Global Imaging as a candidate and someone else suggested Xerox could make a comeback. Seems like this deal could create the best of both worlds - perhaps.



Art Post said...

Amazing, Stunned, on and on. Xerox had to do this to keep placements in the SMB market place.

I beleive there will many many issues that Xerox will have to overcome since Xerox and Global are very far apart with their corporate philosophies.

It may be time to start buying Ikon and Danka stock! It's only a matter of time before Canon and Ricoh will step in and protect their channels. Heck last year OCE purchased Imagistics.

It will be interesting to see how this pans out in the upcoming months and maybe you were right with the "Great American Copier Company", however if and when Ikon And Danka are bought, I believe you will see another National Dealer Network evolve.

my blog: www.mfpsolutions.blogspot.com

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