Scitex Vision is a well known supplier of wide and super-wide format printers for signage and industrial applications, such as billboards, banners, street advertising and packaging. Headquartered in Netanya, Israel, the company had revenue of $142 million for the one-year period ending June 30, 2005. Its principal subsidiaries are located in the United States, Belgium, China, Mexico and South Africa. It also has presence in a further 75 countries.
According to a press release, the acquisition complements HP’s existing product portfolio of large-format printers and HP digital presses. It also provides HP with the benefits of Scitex Vision’s proprietary technology for print heads, providing a significant competitive advantage. Other potential areas of synergy between HP and Scitex Vision’s business include inkjet technology, services and support, direct and indirect distribution channels and supply chain. The company expects the wide-format signage market, in which 17 percent of current printing is done digitally, to double within the next five years.
The transaction is subject to certain closing conditions and is expected to be completed within approximately 90 days. Following completion, the business acquired from Scitex Vision will be fully integrated into HP’s Imaging and Printing Group.
In other news, HP announced revenues of US$ 20.8 billion for the third fiscal quarter (ended July 31, 2005), a plus of 10 percent. Net earnings dropped to $73 million from $586 million in the prior year’s third quarter. Net revenue for the first nine months of 2005 was $63.78 billion, up from $58.52 billion in the first nine months of 2004. The nine-month net earnings in 2005 were $1.98 billion, down from $2.41 billion in the same period of 2004. During the quarter, on a year-over-year basis, revenue in the Americas grew 8 percent to $9.0 billion; Europe, the Middle East and Africa grew 10 percent to $8.2 billion; and Asia Pacific grew 15 percent to $3.5 billion.