The inevitable contraction continues as Konica Minolta Business Solutions U.S.A., Inc. (Konica Minolta) announced the acquisition of Muratec. The acquisition, which closes today, will strengthen the company’s distribution network and further advance Konica Minolta’s leading position within the industry, according to a Konica Minolta press announcement.
The synergism on this one is pretty good. Muratec has private labeled Konica Minolta’s MFPs for at least the last four years. In effect Muratec became Konica Minolta’s distributor of their entry level MFPs.
As a wholly-owned, consolidated subsidiary of Konica Minolta, Muratec America, Inc., the press release noted that Muratec will continue to deliver sales and maintenance business and will operate under the leadership of President, Jim D’Emidio.
“Historically we’ve had a mutual and complementary product lineup with Muratec making this acquisition a great platform to create new synergies together,” said Rick Taylor, president and CEO, Konica Minolta, in today’s press release. “The fact that the fundamentals of both of these companies align and we both strive to be the best in every region, makes this a perfect fit.”
"Muratec and Konica Minolta have had a very close relationship for many years,” added Jim D’Emidio, president, Muratec. “With the strength of Konica Minolta, I am confident we will achieve even more significant growth and provide stronger support to our customers."
You could say the relationship was established and Konica Minolta was apparently impressed by the level of performance that Muratec was delivering. D’Emidio is a proven winner in this business going back to the days when facsimile was an important part of a dealer’s business.
The emergence of the Internet pretty much sealed the doom of facsimile as a free-standing product, and the fax function has been included in the MFP capabilities for at least the last decade, if not longer. D’Emidio made the most of it and rode it to the end. Since that time, D’Emidio has attempted to form relationships with other OEMs that did not quite meet expectations. Still, he has excelled in this business because he always delivered a profit and that is what the parent company expected.
In our annual dealer surveys, D’Emidio has always received plaudits from dealers and is continually mentioned as a Male Executive of the Year candidate. His strength has always been his ability to work with dealers in an atmosphere of mutual respect. When I asked dealers why they like him so much the response was very consistent. “Jim always thanked us for our business and was quick to point out we (Muratec) need you.”
What did Konica Minolta acquire? In terms of MFP’s, we estimate that Muratec was somewhere around $125 million with at least 150 dealers selling their version of the KM product line. In addition, they get a team of sales and technical staff that will continue to perform well under the new ownership.
Given the resources and support from the parent, D’Emidio and the Muratec crew will deliver a first-class performance.
No matter how they slice it, this is a positive move by Konica Minolta and an equally smart decision by Muratec to sell. This is one of those deals made in Japan and obviously the two companies have a strong relationship. In addition, Konica Minolta knew exactly how well they were selling their product line.
My guess is that the Muratec organization can play an important role in the SMB space with the Workplace Hub. If our thinking is correct and the Muratec team gets that product, it should work out quite well for both companies.
Our congratulations to both Rick Taylor and Jim D’Emidio and we look forward to interviewing both of them to learn more about this acquisition.
Consolidation in an industry is often challenging, but in this case, we expect it to work to Konica Minolta’s advantage.
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