EFI has acquired Matan Digital Printers, and bought out Reggiani Macchine.
"The Matan acquisition gives EFI an even broader range of products to help our customers capture important opportunities in superwide-format display graphics printing," said EFI CEO Guy Gecht. "Matan's strong R&D capability will further accelerate EFI's inkjet innovation, while filling a key spot in EFI's portfolio for a lower-acquisition cost line of roll-to-roll production printers focused on signage, banners, billboards and fleet graphics."
Of the Reggiani Macchine purchase Gecht said: "This acquisition gives EFI an immediate leadership position in one of the world's largest industries undergoing the transformation from analogue printing to digital. The addition of Reggiani's innovative team and its 'Made in Italy' textile printing technology enables EFI's customers to expand into soft signage-based display graphics using Reggiani's water-based industrial inkjet printers."
Reggiani's workforce of approximately 190 employees joins EFI. The company’s inkjet technologies will be rebranded as EFI Reggiani, and address the full scope of digital textile printing, with printers suitable for water-based dispersed, acid, pigment and reactive dye printing inks.
To acquire all of the company’s outstanding shares, EFI will repay Reggiani debt of about 20.1m Euro, pay the former Reggiani shareholders up to about 27.4m Euro of cash, and issue the former Reggiani shareholders up to about 27.4m Euro of EFI stock. EFI will pay up to 50m Euro over as long as the next 30 months based on the achievement of revenue and profitability targets by the EFI Reggiani business.
In terms of the Matan acquisition, EFI paid the shareholders of Matan approximately $29m. EFI also assumed approximately $5 million of Matan's debt, and deposited $14m into escrow to serve as security for EFI's benefit for the indemnification obligations of the Matan shareholders. Subject to EFI's claims against the escrow, portions of the escrow may be released to the sellers in 2017 and 2022.
Matan's 70 employees have joined EFI, and former Matan president and CEO Hanan Yosefi has become vice president and general manager, EFI Inkjet Israel.