EFI has agreed to acquire the remaining interest in Raster Printers it does not currently own for approximately $3 million in net cash proceeds plus an additional cash earn out amount that is contingent upon achieving certain performance targets. The transaction, which is expected to close in the fourth quarter of 2008, is expected to be immaterial to EFI's revenues and earnings in Q4 2008.
Raster Printers, founded in 2004, offers a line of environmentally-friendly UV wide format printers, currently marketed under the brand name Daytona, targeted to mid-range customers in the display graphics market. Following the close of the transaction, the products will be marketed under the EFI Rastek brand name. Raster currently operates with a staff of approximately 20 employees out of its headquarters in San Jose, California.
"The acquisition of Raster will allow us to expand our product line and offer a variety of price-point products, significantly increasing our addressable market," said Fred Rosenzweig, president of EFI. "It will also allow us to further leverage our sales force and distribution channels, while solidifying our position as the leading provider of wide-format UV inkjet technology."
"Being part of the EFI group will help us deliver the highest quality solutions and provide our customers with a portfolio of new, powerful products to assist in their success and profitability," said Rak Kumar, president of Raster Printers.