Printer and copier vendor bought dealers in San Francisco and the Delaware Valley to increase local market presence
Xerox did it again. It bought two of its dealers to increase its local presence in two major markets. The intent is to give SMB and midmarket customers direct access to Xerox-led products and services.
The Lowdown: The two companies acquired by Xerox are Rabbit Office Automation of Sunnyvale, California, and Heritage Business Systems of Moorestown, New Jersey (which sits in the heart of the Delaware Valley). The two companies resell printers, multifunction devices, and copiers, as well as provide solutions and professional services including document management, managed print services, and supplies replenishment.
Neither company is exclusive to Xerox. Rabbit also sells Ricoh products and services. Heritage is also a Canon print and copier dealer.
The Details: Xerox says it will merge Rabbit and Heritage into other regional subsidiaries. Rabbit will become a part of MRC Smart Technology Solutions based in San Diego. Heritage will merge with Stewart, a print and managed solutions partner based in Mount Laurel, New Jersey.
Background: Xerox and other printer vendors have a history of buying partners to penetrate local markets and expand their share in professional services. The Xerox model of operating these acquisitions as subsidiaries gives them the air of independence while maintaining control over the types of products and services offered.
The Buzz: “We are focused on further penetrating the small-to-medium sized business market through organic and inorganic growth, which includes making investments in dealers like ROA and HBS,” said Mike Feldman, president of Americas Operations at Xerox. “Integrating ROA and HBS into Xerox Business Solutions (XBS) will expand our local footprint, and clients will now have access to the industry’s most comprehensive offering portfolio.”