Toshiba TEC to buy IBM's Retail Store Solutions biz
IBM, the leader in Smarter Commerce, and Toshiba TEC Corporation, Japan's leading maker of point-of-sale systems and related technology for retailers, announced a definitive agreement under which Toshiba TEC will acquire IBM's Retail Store Solutions (RSS) business, which offers retail point-of-sale solutions worldwide.
Upon completion of the transaction, Toshiba TEC would become the world's foremost retail point- of-sale systems company, offering hardware, software and integrated in-store solutions, and will team with IBM to bring the Smarter Commerce experience to retailers and their customers worldwide.
The purchase price is approximately US$850M.
As part of the transaction, Toshiba TEC will enter into a multi-year agreement with IBM in which Toshiba TEC will become an IBM Premier Business Partner for Smarter Commerce. This agreement will help ensure that IBM's portfolio of enterprise-level Smarter Commerce solutions and services, which extend from the corporate data center to the local retail store, and Toshiba TEC's customer-facing retail store point-of-sale (POS) solutions are available to customers worldwide to meet the growing demand for multi-channel commerce.
It is expected that upon completion of the deal, Toshiba TEC, a subsidiary of Toshiba Corporation, will acquire RSS's overall business operation functions globally, including development, sales and related in-store maintenance. Toshiba TEC's retail store point-of-sale solutions operation will benefit from a worldwide distribution and sales network, enhanced product and solution selection for customers and decades of innovation by both companies.
The transaction is expected to close late in the second quarter or early in the third quarter of 2012 subject to the satisfaction of regulatory requirements and customary closing conditions. Subsequent closings will occur subject to similar conditions, local agreements and the information and consultation process in applicable countries.
Retailers, including those with global store operations, will benefit from accelerated development of new products and solutions for regional and geographic needs. Toshiba TEC customers also will benefit from a “one-stop retail store solution” providing comprehensive support --planning, maintenance and services -- to help them accelerate new store deployments worldwide.
In 2011, IBM announced a major Smarter Commerce initiative that helps businesses automate and infuse intelligence into their procurement, marketing, sales and customer service functions to better serve today's empowered online consumer in the era of mobile and social networks. In a time when brands can be built or broken across the Web within minutes --- and customers expect the same quality experience from all channels --- businesses need to adapt with technology that quickly responds or even anticipates customer needs across any sales channel at any time.
"Together, IBM and Toshiba TEC represent the broadest multi-channel offerings worldwide," said Craig Hayman, general manager, Industry Solutions, IBM Software Group. "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. Retailers can invest with confidence in the proven abilities of these two leaders to deliver multi-channel commerce to more demanding consumers who want the same experience shopping online, in-store, mobile, social or by any other means."