FUJIFILM Holdings Corporation
) recently announced acquisition of the Business Process
Outsourcing (BPO) division of Salmat Limited, the largest business
service provider in Australia. The company had to shell out AU$375
million to take over the BPO division from Salmat. The acquisition
covers all the shares of Salmat Document Management Solutions Pty.
Limited (SDMS). Consequently, Fujifilm will get hold of Salmat's
wholly-owned subsidiary, SDMS's Asian business unit, SDMS's 11
subsidiaries as well as Salmat Asia Limited (SAL).
Subsequent to the closure of this acquisition, Fujifilm Holdings
now plans to promote its business shift from the hardware-centric
multifunction devices and printers business to solutions and
services business, boosted by SDMS's technical expertise. The
company eyes higher sales performance, brand strength and enhanced
customer base, while expanding its business solutions and services
in China and other Asian markets.
Fujifilm's partnership with Salmat is believed to disseminate
SDMS's knowledge and experiences in customer data handling with the
filmmaker's consistency of workflow from printing to post-print
processing, Fujifilm Group will accelerate the expansion of
solutions and services business leveraging its document outsourcing
business. Fujifilm's powerful marketing strategy coupled with
Salmat's advanced IT data management capacity is anticipated to
streamline operations with higher efficiency, automation and cost
Last month, Fujifilm reported a net income of ¥2.5 billion
($31.2 million) in first-quarter 2013 (ended June 30, 2012), down
82.7% year over year. The company witnessed a sluggish European
demand alongside yen appreciation against euro, which affected the
The company operates in a highly competitive industry wherein
traditional and digital imaging products face fierce rivalry from
competitors, such as
Currently, we are maintaining a long-term 'Neutral'
recommendation on FUJIY. Also, the company has a Zacks #4 Rank,
implying a short-term (1-3 months) 'Sell' rating.
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