FREMONT, Calif., July 1, 2015 (GLOBE NEWSWIRE) -- Electronics For Imaging, Inc. (EFI™) (Nasdaq:EFII) today established an industry-leading presence in high-growth inkjet textile printing with the strategic acquisition of Reggiani Macchine. Based in Bergamo, Italy, Reggiani is a leading technology provider with an extensive lineup of industrial inkjet printers utilizing water-based inks in printing on fabric – recently identified as the industry's most exciting growth application by a new, global survey from industry association FESPA and analyst firm InfoTrends.
Reggiani's inkjet technologies, which will be rebranded as EFI Reggiani, address the full scope of advanced textile printing, with versatile printers suitable for water-based dispersed, acid, pigment and reactive dye printing inks. In its 60+ year history, Reggiani has become a leading innovator of a full range of industrial solutions for textile manufacturing, including high-quality printers for fashion and home furnishing textiles, with a comprehensive portfolio spanning the company's original rotary screen technologies to the most advanced inkjet textile printers and inks in the industry. Reggiani has also established relationships with many of the leading textile manufacturing companies around the world and provides an integrated offering including equipment for all stages of the textile printing process, centered around its leading digital inkjet textile printers.
"This acquisition gives EFI an immediate leadership position in one of the world's largest industries undergoing the transformation from analog printing to digital. The textile printing market is just beginning that transition, which will enable manufacturers to shift from long-run to on-demand manufacturing, responding to the increasing demands of short runs and customizations," said EFI CEO Guy Gecht. "The addition of Reggiani's innovative team and their 'Made in Italy' textile printing technology, which is renowned worldwide, will drive continued growth in industrial textile, and also enable EFI's customers to expand into soft signage-based display graphics using Reggiani's water-based industrial inkjet printers."
"Reggiani's customers recognize that inkjet is the most important technology of the future for the textile industry," said former Reggiani shareholder Ambrogio Caccia Dominioni, who will be Managing Director of EFI Reggiani. "But I wanted our company to be part of EFI not just because we will be joining a world-leading industrial inkjet technology company – but also because EFI is a leader in print industry workflow solutions and has a much larger sales and marketing platform around the world.
"Together, EFI Reggiani can further extend its position as a global leader in digital inkjet textile printing technology with leading-edge products that accelerate the analog-to-digital transformation – all of which is vital to our customers' future profitability," Dominioni added. "I am strongly committed to remain fully involved in the company to ensure a smooth integration, a successful implementation of the combined business plan, a growing center of excellence in Italy for EFI's textile inkjet business, and the growth of the EFI-Reggiani business to maintain a leading position in the printing market."
Reggiani has customers in more than 120 countries served by a wide distribution network and agents in over 40 countries.
An industry-leading portfolio for inkjet graphics' top vertical segments
The acquisition enhances an EFI portfolio that addresses the fastest-growing segment of the industrial inkjet printing space. Respondents in the FESPA/InfoTrends survey selected UV inkjet printers as their top expected technology purchase, followed closely by textile printers. EFI is already the leading manufacturer of industrial UV-inkjet printers and ink, and now EFI is also a leading technology provider in the digital inkjet textile space.
To acquire all of Reggiani's outstanding shares, EFI will repay Reggiani debt of about €20.1 million ($22.6M USD*), pay the former Reggiani shareholders up to about €27.4 million ($30.8M USD) of cash, and issue the former Reggiani shareholders up to about €27.4 million ($30.8M USD) of EFI stock, and will pay up to €50 million ($56.2M USD) over as long as the next 30 months based on the achievement of revenue and profitability targets by the EFI Reggiani business. Under certain circumstances, EFI is required to pay in cash some or all of the amount described above that is payable in EFI stock. Reggiani's work force of approximately 190 employees joins EFI, further expanding EFI's growing worldwide presence.
A presentation with additional information on the transaction is available on the investor relations portion of EFI's website at ir.efi.com.
EFI™ (www.efi.com) is a worldwide provider of products, technology and services leading the transformation of analog to digital imaging. Based in Silicon Valley, with offices around the globe, the company's powerful integrated product portfolio includes digital front-end servers; superwide, wide-format, label and ceramic inkjet presses and inks; production workflow, web to print, and business automation software; and office, enterprise and mobile cloud solutions. These products allow users to produce, communicate and share information in an easy and effective way, and enable businesses to increase their profits, productivity, and efficiency.
*Euro-USD conversion based on closing June 30, 2015 exchange rate of 1.1235
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Safe Harbor for Forward Looking Statements Certain statements in this press release are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. Statements in this press release that could be deemed forward-looking statements include, but are not necessarily limited to, statements regarding the impact of the acquisition on EFI's results, expansion of our product portfolio, our future product offerings to Reggiani customers, integration of Reggiani, future customer achievements, continuation of support to the existing Reggiani client base, the timing of payments to the former Reggiani shareholders, and any statements or assumptions underlying any of the foregoing.
Forward-looking statements are subject to certain risks and uncertainties that could cause our actual future results to differ materially, or cause a material adverse impact on our results. Potential risks and uncertainties include, but are not necessarily limited to, unforeseen expenses; the difficulty of aligning expense levels with revenue; management's ability to forecast revenues, expenses and earnings; any world-wide financial and economic difficulties and downturns; adverse tax-related matters such as tax audits, changes in our effective tax rate or new tax legislative proposals; the unpredictability of development schedules and commercialization of products by the leading printer manufacturers and declines or delays in demand for our related products; changes in the mix of products sold; the uncertainty of market acceptance of new product introductions; intense competition in each of our businesses, including competition from products developed by EFI's customers; challenge of managing asset levels, including inventory and variations in inventory levels; the uncertainty of continued success in technological advances; the challenges of obtaining timely, efficient and quality product manufacturing and supply of components; litigation involving intellectual property rights or other related matters; our ability to successfully integrate acquired businesses; the uncertainty regarding the amount and timing of future share repurchases by EFI and the origin of funds used for such repurchases; the market prices of EFI's common stock prior to, during and after the share repurchases; any disruptions in our operations, the difficulty to retain employees; the compliance with the new requirements regarding the "conflict minerals," if they are found to be used in our products, and any other risk factors that may be included from time to time in the Company's SEC reports.
The statements in this press release are made as of the date of this press release. EFI undertakes no obligation to update information contained in this press release. For further information regarding risks and uncertainties associated with EFI's businesses, please refer to the sections entitled "Risk Factors," "Factors That Could Adversely Affect Performance," and other similar sections in our SEC filings and reports, including, but not limited to, EFI's annual report on Form 10-K and its quarterly reports on Form 10-Q, copies of which may be obtained by contacting EFI's Investor Relations Department by phone at 650-357-3828 or by email at firstname.lastname@example.org or EFI's Investor Relations website at http://www.efi.com.
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Source:Electronics For Imaging, Inc.