Antonio Perez, Kodak CEO
Purchase price of $210 million to be paid by Brother for certain assets of Kodak’s Document Imaging business.
Kodak has announced that it has reached an agreement with Brother over the sale of its Document Imaging business, with Brother agreeing to assume deferred service revenue liability of the business totalling approximately $67 million (€51.3 million).
The Document Imaging business consists of a comprehensive portfolio of scanners, capture software and services to enterprise customers, and will cost Brother around $210 million (€161 million), subject to certain price adjustments at closing.
Kodak states that consummation of the transaction with Brother is subject to court approval and a marketing period in which Kodak may try to obtain a higher offer for the business, alone or in combination with other businesses, including through a court-approved auction. It is also dependent upon satisfying customary closing conditions, including required regulatory approvals.
Furthermore, as part of the agreement, Kodak will seek US Bankruptcy Court approval of the bidding procedures at a hearing in late April, with the company aiming for final court approval of a transaction in June.
Commenting on the sale, Antonio M. Perez, Chairman and CEO of Kodak, said: “This proposed sale is another key step in Kodak’s path to emergence – it moves us closer to realising our strategic vision for Kodak’s future. A sale to Brother, should they prevail, would represent an excellent outcome for Document Imaging’s customers, partners and employees.
“Document Imaging has many differentiating strengths, including an outstanding global customer base, award-winning software and hardware solutions, strategic reseller partners and a comprehensive service and support network.”
Dolores Kruchten, President of Document Imaging at Kodak, commented: “We are pleased that under this agreement with Brother, Document Imaging will continue to strengthen its position as a leader of information capture and management solutions for enterprise customers. Our valued customers will receive the highest quality products, world-class customer service and reseller support that have been the hallmarks of our business.”
Kodak has had a turbulent year, with the company filing for bankruptcy in January 2012, announcing the sale of its inkjet printer business in October 2012 and finally auctioning off its digital patent portfolio at the end of last year after a lengthy process.
However, in January 2013 Kodak was granted approval for financing of $844 million (€633 million) in loans from the Stering Committee following the successful sale of its patent portfolio, putting the company in a stronger financial position.