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EFI looks set to acquire superwide format ink-jet press manufacturer Vutek, with an agreement signed between the two companies. The $400m (US281m) cash deal is expected to be closed in the third-quarter of this year. It will contribute to EFI’s earnings immediately and add revenues of $100m in the second half of the year.Guy Gecht, EFI chief executive says, "Vutek will be an excellent addition to EFI’s solutions for the commercial printing market. We expect this acquisition to not only be accretive immediately, but to provide EFI with new revenue streams in the future."
Vutek is headquartered in Meredith, New Hampshire, with approximately 330 employees globally. In 2004, Vutek reported revenues of approximately US$130 million.
Vutek is in the superwide format digital inkjet segment of the commercial print market. Its printers and inks are used to produce point of purchase displays, advertising, posters, billboards and other graphics up to five meters in width. Its 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.
Art Cleary, Vutek co-founder says, "We are excited to become part of the EFI team as their 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."
EFI works in digital imaging and print management solutions for commercial and enterprise printing. EFI’s award-winning technologies offer document management tools from creation to print, including high fidelity colour and black and white Fiery print servers that can output up to 2000 pages per minute production workflow and print management information software solutions for increased performance and cost efficiency; and an array of business-critical enterprise and mobile printing solutions. EFI maintains 21 offices worldwide.
CEO Guy Gecht has previously announced that EFI has a war chest of $1bn for acquisitions, as the company seeks to establish itself as a major player in digital print production.
