Magazines Archives - 2012 June

Toshiba TEC buys IBM's Retail Store Solutions business for US$850m
Story 6 - Retail Technology

JAPAN'S point-of-sale (POS) and retail technology systems provider, Toshiba TEC Corporation, a subsidiary of Toshiba Corporation, has acquired IBM's Retail Store Solutions (RSS) business for US$850 million, in a bid to become one of the world's leading POS suppliers. The deal, which is expected to be completed by the second quarter or early in the third quarter of this year, would also see Toshiba TEC enter a multiyear deal with IBM to become an IBM Premier Business Partner for its Smarter Commerce initiative, in order to meet the growing demand for multi-channel presence among customers globally.

"Together, IBM and Toshiba TEC represent the broadest multi-channel offerings worldwide. The pace of retail expansion requires a strategy to serve this dynamic marketplace. This acquisition by Toshiba TEC creates not only the world's leading point-of-sale company, but also a key business partner for IBM in its strategically important Smarter Commerce initiative," Craig Hayman, general manager for Industry Solutions, IBM Software Group, stated.

He added that retailers can now "invest with confidence" regardless the channel they plan on using to deliver the shopping experience that consumers want.

Toshiba TEC will set up a new holding company in Japan, taking an 80.1% stake, with IBM holding the remaining 19.9% until the third anniversary of the closing date.

IBM RSS' general manager, Steven D Ladwig, will become CEO of the new company's US headquarters in Raleigh, North Carolina.

Mamoru Suzuki, president and CEO of Toshiba TEC, noted: "The opportunities in retail store solutions are expected to grow [due to] increasing demand in POS systems. In addition, demand for multi-channel integration and enhancement of store back-office management accelerates further expansion of sales.

"[This deal] will allow Toshiba TEC to expand its global pointof- sale business through a combination of its competitive product line-up and worldwide network proven by Toshiba TEC's and Retail Store Solutions' history of [their businesses]."

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