Danka Australia has sealed an exclusive deal as reseller of HP’s high-volume, multi-function products (MFPs). The deal comes hot on the heels of the announcement last week that Danka would be ending its three-year relationship with Konica Minolta.
Senior vice-president for Danka, Michael Sheeran, said last year’s high profile merger between Konica and Minolta had created issues for the new entity that needed resolving. The different directions Danka and Konica Minolta were looking to take demanded a split.
Industry sources told ARN failure to agree on future terms was at the root of the split.
Sheeran said the deal with HP had been in the works for some six or seven months and confirmed industry rumours that the MFPs in question would be re-branded Konica Minolta machines.
“They’re Konica Minolta designed machines that are sent to Singapore where the HP smarts are put on board,” he said.
The machines were fundamentally the same, but were worlds apart in regard to connectivity, Sheeran claimed.
The exclusive nature of the new deal was a very important factor, according to Sheeran, because it allowed Danka to focus its resources heavily on HP technology.
“The printer industry has lacked that service-based integrity," he said. "Service in the printer industry hasn’t been a classic scenario.
“If we had gone through IT distribution channels, where there had been very little money in it, then the service aspect of that business would not be a viable proposition for either Danka or the client.”
Danka has been a reseller of HP products for more than two years. The new deal covers its 9085, 9850, 9065 and 9055 models.
National sales manager for Konica Minolta, Richard Gurr, said the vendor had known about Danka's proposed deal with HP since January. He claimed to have been aware of plans to re-badge Konica Minolta machines for a year but said this only applied to a couple of models. He denied industry rumours concerning the reason for the split with Danka, insisting that the companies had parted in order to continue growth.