Eastman Kodak Company (PINK:EKDKQ) announced its agreement to sell its document imaging business to BROTHER INDUSTRIES, LTD. (TYO:6448) for approximately $210 million.
According to the Eastman Kodak Company (PINK:EKDKQ), its Document Imaging business is composed of a comprehensive portfolio of scanner, capture software and services to enterprise clients. Under the agreement, BROTHER INDUSTRIES, LTD. (TYO:6448) will also assume Kodak’s deferred revenue liability of the business of approximately $67 million as of December 31, 2012.
The agreement is subject to court approval with a marketing period for Eastman Kodak Company (PINK:EKDKQ) to seek or obtain a better offer from other interested parties. The company could accept higher offers for its Document Imaging business or in combination with other assets through an auction approved by the court. Kodak filed for chapter 11 bankruptcy protection in January 2012.
In a statement, Antonio Perez, chairman and CEO of Eastman Kodak Company (PINK:EKDKQ) said, “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. A sale to Brother, should they prevail, would represent an excellent outcome for Document Imaging’s customers, partners and employees.”
In addition, Perez added that Kodak’s Document Imaging business has many differentiating strengths including an award-winning software & hardware solutions, outstanding global customer base, strategic reseller partners and a comprehensive service and support network.
According to Kodak, the company will seek the approval from the U.S. bankruptcy court for the bidding process during a hearing on the latter part of April. The company expects to complete the deal in June. Dolores Kruchten, president of Kodak’s Document Imaging business said the company will ensure a smooth transition for customers throughout the sale process.
Kruchten said, “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’s agreement to sell its Document Imaging business is part of its initiative to recover from bankruptcy. The company also said the sales process for its personalized imaging business is ongoing.
In September, last year, Eastman Kodak Company (PINK:EKDKQ) delayed the auction process for its 1,100 digital imaging patents indefinitely after the company failed to reach an acceptable sales agreement with prospective buyers. The company is hoping to sell its patents for $2.6 billion. The company decided to explore other options such as establishing a new licensing company to manage the patents.