Xerox acquires LaserNetworks: Changes Competitive Landscape of MPS in Canada
Today Xerox announced the acquisition of LaserNetworks, an Ontario-based managed print services provider, for an undisclosed sum. LaserNetworks is one of the largest providers in North America and arguably, the leading provider in Canada. This acquisition has essentially doubled Xerox’ managed equipment footprint in Canada. “This consolidates Xerox’ position as a leader in the managed print services market in Canada with a wide suite of services, directed at largest number of segments through the widest array of channels in Canada” said John Quinn, head of corporate communications for Xerox Canada.
According to Xerox Canada, the acquisition will allow them to expand further into the SMB sector of Canada, where LaserNetworks has been providing service since the mid-90s as well as offer LaserNetworks an opportunity to elevate business expansion opportunities after hitting a growth plateau. “Now that MPS has gained traction in large enterprises, and the market is growing, LaserNetworks couldn’t scale its offering and customer base without the resources and stability of a large organization like Xerox—hence the acquisition,” said Quinn.
But, former LaserNetworks President, Brian Stevenson feels differently about LaserNetworks’ ability to compete. “This is absolutely a competitive play. Xerox had not been successful winning in this space against LaserNetworks and HP. With the acquisition, Xerox may have more HP devices under management than HP direct has in Canada. They may also have more devices under management than all of the HP OPS dealers combined in Canada. It has the potential to be a big MPS loss for HP and will be very interesting to see their response.” Since leaving LaserNetworks last year, Stevenson has started his own company, footPRINT Managed Services.
It could absolutely be a big loss for HP, just last year LaserNetworks earned the HP ‘Partner in Excellence’ Award for Growth. Similar to Fuji Xerox’ acquisition of Upstream, which gave them majority control in Australia, Canada will now be in Xerox’ pocket. With the string of acquisitions in this industry, it is likely that more and more regions will fall to a particular OEM as much of the competition is gobbled up.
“The MPS environment is consolidating the ‘middle class’ of dealers. The OEMs are seeking the large savvy MPS dealers who could potentially be competitive to them and adding those dealers to their own business. In the past 18 months, we have seen this consolidation occur with Upstream in Australia (to Fuji Xerox), Printelligent in the USA (to HP), and now LaserNetworks in Canada/USA (Xerox),” said Stevenson.
Connect
