Larry White, Toshiba
In mid-November, Toshiba America Business Solutions (Toshiba) announced it had acquired Electro Imaging Systems (EIS), based in Livermore, CA. Although it was Toshiba’s 56th acquisition overall, it was the first for the manufacturer since 2008, when it obtained HPS Office Systems of Indianapolis.
The deal raised a few eyebrows throughout the industry, given Toshiba’s dormant period. The question is, will Toshiba be dipping its foot into the M&A pool or look to make a big splash. The answer is likely somewhere in the middle. ENX Magazine sat down with Larry White, Toshiba’s chief revenue officer, to learn about the genesis of the deal and garner insight into the company’s acquisition strategy moving forward.
What attracted Toshiba to Electro Imaging Systems Inc. (EIS)? How did this opportunity arise?
White: I was speaking at the BTA conference in Orlando in March. One of the things I discussed was Toshiba getting back into acquisition mode. That night, I went out to dinner with the dealers, and one of the dealers I sat next to was Qasim Tarin, the owner of EIS. We had a great conversation, but at that time, I had no inkling that he was thinking about selling. About two months later, I was contacted by the brokers who were handling the sale of this business. They gave information about the business, where it was located and who were their manufacturers, but not the name. After hearing it, I knew exactly who it was.
We were among a number of businesses bidding on the company and we were fortunate enough to buy the business. There were a number of reasons that drew us to EIS. It’s a quality business and I think the world of Qasim. It was located in a region, the San Francisco Bay area, which was strategic for us; we already have a branch there. We were doing OK in that market, but not getting the total share, so it was a perfect acquisition to roll into our branch and give us more scale.
After about a nine-year absence, what prompted Toshiba’s re-entry into the M&A theater? How vital is it to the success of Toshiba’s growth strategy?
White: There’s been so much M&A activity over the last three years. We’re not going to be a major player because we’re happy with our distribution. Some acquisitions are defensive, others are strategic, like EIS was for us. If the right acquisition in the right marketplace comes along, we’re certainly going to look at it. We do have a pipeline of acquisitions we’re looking at and we’ll continue to do that as we move forward. And while M&A is a pillar of our business, it is not a key strategy for us moving forward. It is important for us to stay in the acquisition business, but our business is not reliant on being in it.
Are there any particular attributes, outside of geography, that will weigh heavily in evaluating prospects?
White: Other than opportunity and location and whether it makes sense strategically for us, we look at the portfolio of software solutions that they sell. We look at whether they’re in managed IT services. If they’re heavy in that business, that’s something we want to do in that marketplace. That’s the case for EIS, which is doing managed IT. That was one of the reasons we wanted to acquire that business.
What are your M&A goals heading into 2018?
White: For 2018, I’d like to do five or six acquisitions; that would be plenty for us. That’s a lot of work between doing the evaluations and the assimilation of an acquired company into Toshiba. If I only do one deal and it’s the right one, I’d still be happy. If five or six are available in the right market, in the right area, at the right acquisition price, we’ll move on it.
