GE acquires equipment leasing business for $1.5 billion

<p>Shares of IKON Office Solutions surged 20 percent Thursday after General Electric Co. agreed to acquire its equipment leasing business for $1.5 billion.</p><p>IKON will sell selected assets to GE Vendor Financial Services, a Danbury-based unit of GE Commercial Finance that provides financing to equipment manufacturers and has $26 billion in assets.</p><p>GE and IKON also will enter into an agreement for the funding and servicing of IKONs future leases and rental contracts in the U.S. and Canada.</p><p>No job cuts are expected. IOS Capital LLC, IKONs wholly owned leasing subsidiary that is based in Macon, Ga., has approximately 400 employees, the companies said.</p><p>The deal is expected to close in the first quarter of 2004.</p><p>Valley Forge, Pa.-based IKON, which had revenue of $4.7 billion in fiscal 2003, distributes copier and printing technology designed to help businesses manage documents efficiently and provides lease financing through its subsidiaries, including IOS Capital.</p><p>Shares of Ikon gained $1.75 to $10.55 in midday trading on the New York Stock Exchange, where GE shares rose 46 cents to $30.18.</p><p>___</p><p>On the Net:</p><p>HASH(0x286585c)</p><p>HASH(0x28658e0)</p>