"Accelerating HP's push into the rapidly growing digital-printing market."?
HP has signed an agreement to acquire substantially all of the assets of Scitex Vision for $230 million from Scitex Corporation Ltd. Upon closing of the transaction (expected in 90 days), Scitex Corporation will license its rights to the "Scitex" tradename to HP and Scitex Corporation will change its corporate name.
The acquisition, says HP, will expand its leadership in large-format printing into the industrial super-wide category and strengthen its position as a one-stop partner for providers of print services. It will also provide HP with the benefits of Scitex Vision's proprietary technology for printheads. Other potential areas of synergy, says HP, include services and support, direct and indirect distribution channels, and supply chain.
"The purchase of this business from Scitex Vision will further accelerate HP's push into the rapidly growing digital-printing market," says Enrique Lores, vice president and general manager, large format business, HP. "Wide-format signage is one of the fastest growing opportunities in the market. Currently, 17% of printing in this area is done digitally and we expect that to double within the next 5 years. Scitex Vision is one of the leading companies in this space, with a strong customer base, unique products and technologies and an outstanding customer support organization."
Dov Ofer, CEO of Scitex Vision, adds, "Joining together Scitex Vision with HP will bring substantial benefits to our customers, the wider marketplace, and our employees. Our customers will benefit from access to a wider range of products and services while they continue to enjoy the same high levels of attention they are used to receiving. Our technology will reach a broader audience as it becomes available more widely. And employees will enjoy professional opportunities as the business grows within a leading global organization."
Scitex Vision's net income was $2.9 million in the second quarter of 2005, compared with $1.2 million in the second quarter of 2004 and $3.7 million in the first quarter of 2005. Its revenue for the second quarter of 2005 was $37.7 million, an increase of 22% compared to the corresponding quarter of 2004 and an increase of 3% from the first quarter of 2005. Geographically, Scitex Vision's revenues were relatively balanced in the second quarter, with the Americas contributing 35%, Europe representing 34%, and the rest of the world accounting for 31%.
Headquartered in Netanya, Israel, Scitex Vision has principal subsidiaries in the US, Belgium, China, Mexico, and South Africa. (HP: www.hp.com, Scitex Vision: www.scitexvision.com, Scitex: www.scitex.com)