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Eastman Kodak has announced the completion of its acquisition of the assets of Scitex Digital Printing (SDP), manufacturer of high-speed, variable data inkjet printing systems, from Scitex Corporation, and has renamed the company Kodak Versamark. Kodak acquired the assets of SDP for US$250m and funded the acquisition through available cash, with no incremental borrowing. After taking into account US$13m of SDP’s cash balance acquired at closing, Kodak paid a net cash price of US$237m.Kodak expects that the acquisition will accelerate its growth in the US$30bn digital commercial printing industry and complement its existing commercial printing operations. These include its NexPress and Kodak Polychrome Graphics joint ventures, as well as its wholly owned Encad subsidiary.
Kodak Versamark will operate as a wholly owned subsidiary of Kodak and will be run from Dayton, Ohio, USA by Nachum "Homi" Shamir, formerly president and CEO of SDP and CEO of Scitex Corporation. He will report to James Langley, president of Commercial Printing, and senior vice president of Eastman Kodak.
According to Kodak, the purchase is part of Kodak’s growth strategy to acquire companies and technologies that complement the company’s existing businesses, capabilities and assets. Through a mixture of selective acquisitions and internal investments, Kodak plans to expand into a range of commercial businesses.
Kodak expects the purchase to be slightly dilutive in the first full year and to add to earnings thereafter.
