DANBURY, Conn.--Dec. 11, 2003--GE Vendor Financial Services, a unit of GE Commercial Finance, the business-to-business financial services unit of the General Electric Company (NYSE: GE), announced today it has agreed to acquire selected assets from IKON Office Solutions (NYSE: IKN).
Under the definitive agreement, IKON will sell a $1.8B leasing portfolio. In addition, GE and IKON will enter into a Program Agreement for the funding and servicing of IKON's future lease originations and rental contracts in the U.S. and Canada. Offers of employment will be extended to approximately 400 IOS Capital employees. Vendor Financial Services will operate the new organization utilizing the existing facility.
The transaction has been approved by both companies and is expected to close in the first quarter of 2004.
"A highly respected participant in the equipment leasing market, IKON brings to GE a quality portfolio of assets, as well as a reputation for managing a responsive and efficient leasing business," said Dan Henson, President and Chief Executive Officer of GE Vendor Financial Services. "We look forward to continuing to deliver the highest level of service and support to existing and new IKON leasing customers, and continued growth for both businesses."
"This alliance with GE is a win-win for our employees, customers and shareholders, pairing together two organizations that have a strong customer-centric vision and commitment to quality," said Matthew J. Espe, Chairman and Chief Executive Officer of IKON. "GE's strong portfolio and experience in commercial finance and equipment leasing will provide us with the enhanced financial flexibility to accelerate growth in IKON's core business and maintain our key competitive advantage - offering our customers the industry's broadest portfolio of products and services to meet their document efficiency needs."
About IKON
IKON Office Solutions (www.ikon.com) integrates imaging systems and services that help businesses manage document workflow and increase efficiency. As the world's largest independent distribution channel for copier and printer technologies, IKON offers best-in-class systems from leading manufacturers such as Canon, Ricoh and Hewlett Packard and service support through its team of 7,000 service professionals worldwide. IKON also represents the industry's broadest portfolio of document management services: outsourcing and professional services, on-site copy and mailroom management, fleet management, off-site digital printing solutions, and customized workflow and imaging application development. IKON also provides lease financing services to its customers through its wholly-owned subsidiaries, including IOS Capital, LLC. With Fiscal 2003 revenues of $4.7 billion, IKON has approximately 600 locations throughout North America and Europe.
IOS Capital, LLC is IKON's wholly-owned leasing subsidiary in the U.S. Created in 1987, IOS Capital services more than 100,000 customers, manages over 400,00 assets and originates more than $1.5 billion in new financing on an annualized basis. IOS Capital has approximately 400 employees and is located in Macon, Georgia.
About GE Vendor Financial Services
GE Vendor Financial Services (www.vendorfinancialservices.com), a unit of GE Commercial Finance, is a global leader in developing and providing financial solutions and services to equipment manufacturers, distributors, dealers and their end users. With $26 billion in served assets worldwide, 1,200 manufacturers, 49,000 dealers & distributors and over 600,000 accounts in more than 30 countries, Vendor Financial Services helps its customers drive new business by providing superior service, a commitment to quality and the application of the latest e-commerce technology. Headquarters are based in Danbury, Connecticut, USA.
About GE Commercial Finance
GE Commercial Finance (www.gecommercialfinance.com) offers businesses of all sizes an array of financial services and products worldwide. With approximately $200 billion in assets and an expertise in the mid-market segment, GE Commercial Finance provides loans, operating leases, financing programs and innovative structured capital to help customers grow. A wholly owned subsidiary of the General Electric Company, GE Commercial Finance is headquartered in Stamford, Connecticut, USA. GE is a diversified services, technology and manufacturing company with operations worldwide.
Caution Concerning Forward Looking Statements: This document includes certain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from these expectations due to changes in global political, economic, business, competitive, market and regulatory factors. More information about those factors is contained in GE's filings with the Securities and Exchange Commission.
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CONTACT:
GE Vendor Financial Services
Anne Witkavitch, 203-749-3573
Jeff Wilson
GE Capital Corporate Finance
[email protected]
1-203-749-6340