EFI to Pay $281 million for Wide Format Printer Company15 Apr, 2005
EFI to Pay $281 million for Wide Format Printer Company
EFI, a company focused on digital imaging and print management solutions for commercial and enterprise printing, today announced it has signed an agreement to acquire privately held VUTEk, Inc., a provider of superwide format digital inkjet printers, for approximately $281 million in cash.
EFI expects the transaction to close early in the third quarter of 2005, subject to regulatory approval. The acquisition is expected to add approximately $72 million in revenue and 11 cents in pro forma diluted earnings per share in the second half of 2005.
"VUTEk will be an excellent addition to EFI's range of best of breed innovative solutions for the commercial print market. VUTEk is the sales leader in the growing segment of superwide format digital inkjet printing," said Guy Gecht, EFI CEO. "There are many natural synergies between EFI's core expertise in digital printing innovation and VUTEk's digital inkjet technology and we are both leaders in the ongoing industry transition from analog to digital printing. With VUTEk's profitable business model, we expect this acquisition to not only be accretive immediately, but to provide EFI with new revenue streams in the future."
"We are excited to become part of the EFI team as its worldwide reputation, deep industry relationships and financial stability will allow us to gain greater market reach and provide our valued customers with an even higher quality of service, " said Art Cleary, VUTEk co-founder. "Our customers and employees will also benefit from EFI's culture of innovation, allowing us to remain on the leading edge."
VUTEk is headquartered in Meredith, New Hampshire with approximately 330 employees globally. In 2004, VUTEk reported revenues of approximately $130 million. VUTEk’s printers and inks are used to produce point of purchase displays, advertising, posters, billboards and other "out of home" graphics up to five meters in width. VUTEk's customers include commercial printers, screen printers, photo labs, sign shops and reprographic houses that print on a variety of surfaces including paper, vinyl, corrugated, textile, glass, plastic and nearly any other substrate up to two inches thick.
For more information on these companies, visit www.efi.com and www.vutek.com.