In an effort to become market leader in image processing and scanning, Xerox Corp, as reported briefly Friday (CI No 1,036) has merged its two subsidiaries to form a new independent company, Xerox Imaging Systems. Xerox has unified Datacopy Corp and Kurzweil Computer to form an operation that will initially focus on the provision of high end electronic filing systems. Xerox bought Datacopy in July, 1988 (CI No 924) in order to merge it with Kurzweil – which it has owned since 1980 – as part of its Strategy 95, intended to make it the leading operator in document processing by 1995. The two companies’ complementary technologies was a major reason for Xerox’s decision to merge the businesses: Datacopy specialises in optical character recognition scanners, image processing software and desktop communications products, while Kurzweil combines intelligent character recognition technology and speech synthesis. Xerox is confident that this technology within a single enterprise will give it a competitive advantage over Eastman Kodak Co, IBM and others who are developinhg their own image processing systems. Management of the new Mountain View, California-based company will comprise former personnel from both Kurzweil and Datacopy. In contrast to recent Xerox acquisitions – involving full integration with the parent company – Xerox Imaging Systems will retain independent marketing and planning functions, in what vice-president of stategic marketing Jim McNaul describes as an effort to maintain entrepreneurial spirit. Xerox Imaging Systems – which will now use Kurzweil and Datacopy as brand names for existing products has announced a new Datacopy scanner, along with companion software packages; the 300 dot per inch 730GS flatbed scanner, for Mac and MS-DOS micros, claims to enable improved desktop production of photographic images and is available for $2,000.
