Electronics For Imaging, Inc. (EFI) announced that it has acquired privately-held Cretaprint S.L., for approximately $31 million and an earn-out of up to $21 million based on growth targets for 2012 and 2013. Cretaprint, with headquarters in Castellón, Spain, is a leading developer and supplier of inkjet printers for ceramic tiles.
The company expects the transaction to be accretive to 2012 earnings and immaterial to first quarter 2012 earnings. Cretaprint is expected to contribute approximately 5% to 7% to EFI's 2012 revenue.
"As evidenced by our record revenues, we are benefitting from strong traction in our industrial inkjet segment and are excited about expanding into the ceramic tile market, which represents a tremendous growth opportunity for EFI," said Guy Gecht, CEO of EFI. "We have been tracking the swift transformation from analog to digital technology in tile imaging for quite some time, and have been deeply impressed with the fast growth and global leadership position of Cretaprint."
"We are extremely excited to join EFI and look forward to leveraging EFI's Silicon Valley high-tech DNA, inkjet expertise, workflow, and color management," said Victor Blasco, CEO of Cretaprint. "EFI's global presence will accelerate the adoption of our digital technology across the globe and especially in emerging markets."
Industry analysts continue to project rapid growth in ceramic tile inkjet printing, as noted by Dr. Ray Work, Work Associates.
"The tile industry is moving towards inkjet," said Dr. Work. "The financial incentives are so great that the entire industry is converting rapidly to inkjet. The ceramic tile manufacturer can pay back their investment in an inkjet digital press for ceramic tiles in as little as six months."
Separately, the company announced preliminary results for the fourth quarter of 2011, ended Dec. 31. For the fourth quarter the company expects record revenues of approximately $163 million, compared to $145 million in the fourth quarter of 2010, marking EFI's eighth consecutive quarter of double digit growth.
The company noted that the results were driven by record revenue in both the inkjet and APPS segments, which contributed to continued strong growth in the company's recurring revenues.