Kodak Is Selling Their Document Imaging Business To Brother For $210 Million
Brother is a multinational electronics and electrical equipment company based in Japan that has acquired Kodak’s imaging business for $210 million in cash. Brother will be assuming deferred service revenue liabilities of the business, which totaled around $67 million as of December 31, 2012.
Kodak’s Document Imaging business offers a comprehensive portfolio of scanners, capture software, and services to enterprise customers. The transaction with Brother is subject to court approval and a marketing period where Kodak may have to obtain a higher or better offer for the business.
“This proposed sale is another key step in Kodak’s path to emergence – it moves us closer to realizing our strategic vision for Kodak’s future,” stated Kodak CEO and chairman Antonio M. Perez. “A sale to Brother, should they prevail, would represent an excellent outcome for Document Imaging’s customers, partners and employees.”
Kodak is seeking U.S. Bankruptcy Court approval of the bidding procedures at a hearing in late April and is targeting final court approval of a transaction in June. Dolores Kruchten, the President of Document Imaging at Kodak, will be working through the sales process. Lazard is working as the financial advisor to Kodak. Sullivan & Cromwell is the lead legal advisor for Kodak in this transaction.