April 17, 2012 – Toshiba TEC officially released its plan to pay $850 million for IBM’s Retail Store Solutions division.
The move announced Tuesday would give the Japanese retail tech provider a large portion of the point-of-sale market and an expansion of its on-demand offerings.
Toshiba TEC, a subsidiary of the larger Toshiba provider, holds 7 percent of the POS terminal market, according to figures from Reuters. The IBM portion Toshiba is purchasing holds the top spot in the worldwide POS terminal market with a 22-percent share.
The IBM retail division would give Toshiba a worldwide distribution and sales network beyond its Asian market presence. It also aims to address what Toshiba TEC CEO and President Mamoru Suzuki called the growth in the customer-facing sales market that has led to a “demand for multi-channel integration and enhancement of store back office management.” That includes more comprehensive services and support for retail offerings in the cloud, according to a news release on the deal.
The proposed deal also includes a multi-year agreement making Toshiba a “premier” partner for IBM’s Smarter Commerce software and services. Current Retail Store Solutions customers include Walmart and Toys “R” Us.
Citing a source familiar with the deal, Reuters and other outlets first reported the acquisition early Tuesday.
The deal is subject to closing conditions and is expected to be finalized either late in the second quarter of 2012 or early in the third quarter, according to an IBM release. The deal involves the establishment of a new holding company in Japan, with Toshiba TEC acquiring 80.1 percent of its stake and IBM holding the difference until an eventual buyout from Toshiba. After the deal closes, IBM will continue to provide maintenance services to RSS clients under multi-year agreements.