EFI Spins Off Its MWA Product Line to MWA Intelligence, LLC5 Jun, 2006
EFI Spins Off Its MWA Product Line to MWA Intelligence, LLC
FOSTER CITY, CA - EFI, a world
leader in digital controllers, superwide format printers and inks, and print
management solutions, has announced the sale of its Mobile Workforce Automation
product line for $10 million to a newly formed company backed by MWA
Intelligence, Inc. EFI will retain a 5 percent interest in the new company which
will remain under existing management.
The company expects the transaction to have an immaterial impact on its second quarter 2006 results. For the remainder of 2006, the sale of MWA will result in a reduction of revenues of approximately $5 million and a $0.02 reduction in earnings.
The company intends to use the proceeds from the sale to buy back its shares over the next 30 days.
MWA Intelligence, Inc., was
formed by Opus Acquisition Group, LLC, Greyrock Capital Group and other
investors to create the newly formed company and to manage the MWA product line.
The MWA product line includes EFI's Mobile Workforce Automation solution
(formerly known as Automated Dispatch Systems or ADS) and other related
"This decision benefits both EFI's and MWA's customers, enabling EFI to further focus on strategic growth opportunities in digital printing while giving MWA independence and dedicated resources to capitalize on the opportunities in the mobile field service, tracking and remote diagnostic tools marketplace," said Guy Gecht, EFI CEO.
"MWA Intelligence, Inc. is strategically focused on expanding its service management, mobile workforce automation, and remote and intelligent asset diagnostics solution portfolio around the world," said Michael T. Stramaglia, MWA CEO. "While EFI is a well-respected and innovative company, the MWA business is now at a point where given the right resources and focus along with the strong backing of MWA Intelligence, Inc., we can establish a successful independent workforce and assets management company. MWA Intelligence provides the resources necessary to further develop our technology, customer support and worldwide reach."