$1.8 Billion Investment on Mergers and Acquisitions

Sourced from: Wirth Consulting

In order to seek new avenues for growth, Ricoh Company of Tokyo, Japan, plans to , as reported by Nikkei Asian Review.

According to Ricoh’s new five-year business strategy, Ricoh’s businesses would not be threatened by Fujifilm’s proposed takeover of Xerox, a move that would make the combined Xerox-Fuji Xerox the world’s largest maker of copier/MFPs.

“We will shift the focus of our strategy toward growth,” said Ricoh’s Yamashita, President and CEO of Ricoh.

Ricoh’s new five-year plan calls for more spending on mergers and acquisitions (M&A) in order to lay the foundation for expanding Ricoh’s business beyond copiers and digital services – it will allocate an M&A budget of over 200 billion yen (US$1.84 billion).

Ultimately, the company envisions group sales of 2.3 trillion yen (US$2 billion) and operating profit of 185 billion yen (US$1.7 billion) in the year through March 2023.

If successful, Ricoh’s share of office equipment in overall sales would fall below 40 percent from its current 50 percent level.