Toshiba Acquires IBM Retail POS Business for $850M

Toshiba TEC, Japan's leading manufacturer of point-of-sale systems, will acquire IBM's Retail Store Solutions (RSS) business for $850 million as part of a definitive deal that is expected to close in late June or early July 2012. The purchase will give Toshiba TEC, a subsidiary of Toshiba Corp., nearly 20% of the worldwide POS installed base for retail and hospitality, according to IHL Group.

"The two companies will have a combined installed base market share of 18.8%," Jerry Sheldon, vice president of technology, IHL Group, told RIS News, adding that the two companies combined ship percentages for POS were 13.7% in 2011.

It's expected that Toshiba TEC, a subsidiary of Toshiba Corp., will acquire RSS's overall business operation functions globally, including development, sales and related in-store maintenance, according to a statement. Toshiba will benefit from a worldwide distribution and sales network and enhanced product and solution selection.

As part of the transaction, Toshiba TEC will enter into a multi-year agreement to become an IBM Premier Business Partner for Smarter Commerce. The partnership will help ensure that IBM's enterprise-level Smarter Commerce solutions, which extend from the corporate data center to the store, are available along with Toshiba TEC's POS solutions to customers worldwide.

"IBM is considered the Cadillac of POS terminals, with leadership in design, development, and the ability to couple hardware, software and services with tremendous expertise in store systems," says IHL Group's Sheldon. "There's tremendous brand equity there."

Toshiba brings complementary strengths to the deal. "Relatively speaking, Toshiba is stronger in hospitality than in retail," he adds. "And while IBM has strength in North America, Europe and Latin America, it's not the same story in the Asia/Pacific region. So there are some nice synergies and a chance to grow globally," says Sheldon.