Toshiba to pay $850M for IBM retail POS business
Toshiba subsidiary says deal will close in the next few months; IBM will still support current point-of-sale customers after deal closes
IDG News Service - Toshiba said Tuesday it will purchase IBM's retail point-of-sale (POS) business for $850 million, with the Japanese company taking over the hardware business while IBM shifts its focus to back-end software solutions.
Toshiba Tec, a subsidiary of the Japanese conglomerate that sells POS products such as cash registers and printers, said the deal is expected to close by early in the third quarter. IBM said the Japanese firm will sign a multi-year deal to become a partner in offering IBM's expanding "Smarter Commerce" platform, which aims to provide customers with a similar experience when shopping online and in-store.
The deal reflects the diverging philosophies of firms like IBM, which are focusing on software platforms and consulting services, and giant Japanese conglomerates like Toshiba that traditionally emphasize hardware and manufactured goods.
IBM is pushing its retail back-end platform, a set of tools for analyzing customer and operations data, and has in recent months announced deals that bolster its offerings in the area. The company said in February it completed its acquisitions of Emptoris, which provides software and services to aid supply chain management, and DemandTec, a maker of cloud-based analytical software for retailers.
In contrast, Toshiba Tec emphasizes "monozukuri," a Japanese concept that focuses on quality manufacturing of physical products, in its website and marketing materials. The company said the acquisition would expand its distribution and sales network while giving it a broader product line.
The companies said the deal still has to clear regulatory requirements and come to final closing terms. IBM will continue to provide support to its existing clients after it has been completed.
- Aberdeen Group: Marketing Analytics for Manufacturing: Forging Customer Insights There are no recalls for poor marketing. Manufacturers need to get their customer intelligence and messaging right the first time. Learn how.
- The Brave New World of Customer-Centric Manufacturing The Unique Opportunity for Manufacturers to Better Understand their Consumers
- See the Possibilities Utilizing Data Visualization Do you simply want to collect data, or do you want to derive business insights from it? What if you could quickly and...
- 5 Customers Deliver Virtual Desktops and Apps to Empower a Modern Workforce Learn how Citrix solutions helped 5 companies realize the full value of desktop virtualization through a project-by-project approach based on key business priorities.
- What Does it Take to Deliver a Superior Customer Experience? The Two Top-Rated Online Retailers, B&H Photo and Crutchfield Electronics, Share Their Secrets Discuss practical CX tools and service methods such as contact center agents and the use of realtime speech analytics to help contact center...
- Keep Servers Up and Running and Attackers in the Dark An SSL/TLS handshake requires at least 10 times more processing power on a server than on the client. SSL renegotiation attacks can readily... All IT Industry White Papers | Webcasts