TechTaffy

tech:

taffy

Toshiba To Acquire IBM’s RSS Business For $850M

By TechTaffy Desk

[Techtaffy Newsdesk]

Toshiba TEC will acquire IBM’s Retail Store Solutions (RSS) business, which offers retail point-of-sale solutions worldwide. The purchase price is approximately $850 million. As part of the transaction, Toshiba TEC will enter into a multi-year agreement with IBM in which Toshiba TEC will become an IBM Premier Business Partner for Smarter Commerce.

The transaction is expected to close late in the second quarter or early in the third quarter of 2012 subject to the satisfaction of regulatory requirements and customary closing conditions. Subsequent closings will occur subject to similar conditions, local agreements and the information and consultation process in applicable countries.

While the transaction is being completed, the companies will continue to operate independently. After the transaction closes, IBM will continue to provide maintenance services to RSS clients under a multi-year services agreement. Retail Store Solutions customer service and product availability will continue as usual as the RSS operations are integrated.

The way the transaction will work is, a new holding company will be established in Japan. This company will hold the equity of a number of companies organized in countries around the world. Toshiba TEC will acquire an 80.1 percent stake in this holding company and IBM will hold a 19.9 percent stake in the holding company. Eventually, the holding company will become a wholly owned subsidiary of Toshiba TEC. The new companies, including the holding company, will continue to operate Retail Store Solutions’ business worldwide as Toshiba TEC’s core retail point-of-sale solution affiliates.

Steven D. Ladwig, currently general manager, IBM Retail Store Solutions, will become the chief executive officer (CEO) of the new US company with headquarters in Raleigh, North Carolina.

The Retail Store Solutions revenue in 2011 was approximately $1.15 billion with approximately 1,000 employees worldwide plus maintenance specialists. Over time, the maintenance specialists are expected to join the new companies.

[Image Courtesy: IBM]

Just in

Around the web

ChatGPT search tool vulnerable to manipulation and deception, tests show — The Guardian

OpenAI’s ChatGPT search tool may be open to manipulation using hidden content, and can return malicious code from websites it searches, a Guardian investigation has found; writes Nick Evershed. 
Public Sector

SAIC secures $170.9M cybersecurity contract with Texas Department of Information Resources

Science Applications International Corp. (SAIC) has been awarded a $170.9 million contract by the Texas Department of Information Resources (DIR) to provide cybersecurity services.
Series A

Infinant raises $15M

Charlotte, NC-based Infinant, a bank platform provider, has raised $15 million in a Series A funding round.
AI

Lockheed Martin partners with IBM to enhance AI tools for defense applications

Lockheed Martin is integrating IBM’s Granite large language models (LLMs) into its AI Factory.
IT

Zettabyte, Foxconn ink data center partnership

Zettabyte, a company specializing in AI data center software and infrastructure, has entered into a partnership with Hon Hai Technology Group (Foxconn).