Press Release: HP Expands into Super-wide Format Printing with Acquisition of the Business of Scitex Vision


BARCELONA, Spain, Aug. 11, 2005 – HP today announced that it has signed an agreement to acquire substantially all of the assets of Scitex Vision, a market leader in super-wide digital printing, for $230 million from Scitex Corporation Ltd. (Nasdaq: SCIX).

The acquisition expands HP’s leadership in large-format printing into the industrial super-wide category and strengthens its position as a one-stop partner for providers of print services.
Scitex Vision is a market leader in 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.
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 purchase of this business from Scitex Vision will further accelerate HP’s push into the rapidly growing digital printing market,” said Enrique Lores, vice president and general manager, Large Format Business, HP. “Wide-format signage is one of the fastest growing opportunities in the market. Currently, 17 percent of printing in this area is done digitally and we expect that to double within the next five years. Scitex Vision is one of the leading companies in this space, with a strong customer base, unique products and technologies and an outstanding customer support organization.”
Dov Ofer, chief executive officer of Scitex Vision, added: “Joining together Scitex Vision with HP will bring substantial benefits to our customers, the wider marketplace and our employees. Our customers will benefit from access to a wider range of products and services while they continue to enjoy the same high levels of attention they are used to receiving. Our technology will reach a broader audience as it becomes available more widely. And employees will enjoy professional opportunities as the business grows within a leading global organization.”
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.
About Scitex Vision
Scitex Vision is a manufacturer and service provider of Piezo Drop On Demand inkjet based digital printing presses and consumables for industrial applications, including wide-format graphic arts, packaging and textiles.
The majority of Scitex Vision’s shares are owned by Scitex Corporation Ltd. (Nasdaq: SCIX). During the four fiscal quarters ended June 2005 Scitex Vision’s revenues totalled $142 million. More information about Scitex Vision is available at www.scitexvision.com
About HP
HP is a technology solutions provider to consumers, businesses and institutions globally. The company’s offerings span IT infrastructure, global services, business and home computing, and imaging and printing. For the four fiscal quarters ended April 30, 2005, HP revenue totaled $83.3 billion. More information about HP (NYSE, Nasdaq: HPQ) is available at www.hp.com.

This news release contains forward-looking statements that involve risks and uncertainties, as well as assumptions. If the risks or uncertainties ever materialize or the assumptions prove incorrect, the results of HP and its consolidated subsidiaries may differ materially from those expressed or implied by such forward-looking statements and assumptions. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including expected benefits of the transaction; management plans relating to the transaction; the expected timing of the completion of the transaction; statements of expectation or belief; and any statements of assumptions underlying any of the foregoing. Risks, uncertainties and assumptions include the possibility that expected benefits may not materialize as expected; risks related to the timing or ultimate completion of the transaction; and other risks that are described from time to time in HP’s Securities and Exchange Commission reports, including but not limited to HP’s Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2005, and other reports filed after HP’s Annual Report on Form 10-K for the fiscal year ended Oct. 31, 2004. HP assumes no obligation and does not intend to update these forward-looking statements.

Posted: Fri - August 12, 2005 at 08:09 AM          

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