Japanese OEM manufacturer, Funai Electric, has signed an agreement to acquire printing and imaging company, Lexmark International’s inkjet-related technology and assets for about $US100 million.
As per the agreement, Funai will become a manufacturer of Lexmark's aftermarket inkjet supplies. Lexmark will continue to support its installed base of customers in the sale of aftermarket inkjet supplies and provide customer technical and warranty support.
The transaction is subject to customary closing conditions and is expected to close by mid-2013.
Upon closing the transaction, Funai will acquire more than 1500 inkjet patents, Lexmark's inkjet-related research, development assets and tools, all outstanding shares, the Lexmark International manufacturing facility in Philippines, as well as its other inkjet-related technologies and assets.
Funai claimed, in a statement, that the acquisition would enable it with capabilities to develop, manufacture and sell inkjet hardware and inkjet supplies under Funai's own brands.
Funai president and CEO, Tomonori Hayashi, said the company’s strong relationship while manufacturing inkjet hardware for Lexmark since 1997 aided in the acquisition.
He also mentioned that the company has established a strategy to develop and grow its inkjet printer business by introducing its own inkjet printers and supplies into the market.
"Funai and Lexmark have developed a great partnership. The acquisition of the inkjet-related technology and assets enables Funai to start and grow our own inkjet business. Funai will benefit from the strong inkjet business platform that Lexmark has established," he said.
Lexmark chairman and CEO, Paul Rooke, said the company remains focused on its continued transition from a hardware-centric to a solutions-centric company.
"As we continue our transition to becoming a leading end-to-end solutions provider, this transaction essentially completes our exit from the ownership of inkjet-related assets, although we will continue to support our existing customer base with the sale of inkjet supplies," Rooke claimed.
He also said there will not be a disruption of Lexmark customers and distributors’ service or support as they continue working directly with the company.