Printing technologies developer Scitex (Nasdaq: SCIX) announced on Tuesday that it had agreed to merge its wholly owned subsidiary Scitex Vision with 43% owned affiliate Aprion Digital. Aprion develops inkjet technologies for industrial applications, while Herzliya-based Scitex Vision manufactures super-wide format digital printing systems.
Scitex says the merger will be implemented on an approximate one to one basis, and expects the transaction to close by the end of the year. In addition, Scitex plans to strengthen the capital structure of the merged entity by infusing additional funds into the unit.
Aprion president and CEO Dr. Michael (Miki) Nagler said, "Joining forces with Scitex Vision will substantially expedite the rate of penetration of our products to the market. Together, we will create a leading, fast growing powerhouse of industrial inkjet solutions. Our merged company, which will operate under a new name, will continue the current product lines and market initiatives of both companies."
Scitex Vision president and CEO Dov Ofer added, "The merger matches the customer facing strength of Scitex Vision and the stability of its ongoing business, with the new business opportunities generated by Aprion's unique products and technology assets. The merger will ensure our continued ability to bring breakthrough solutions to our customers and accelerate the rate of digital technology adoption in more and more market segments. The new company will be based on the complementary skills and dedication of our employees and partners."
Dov Ofer will head the merged company as its president and CEO. Ken Levy and Dr. Miki Nagler will serve on the board of directors of the merged company as chairman and vice-chairman.
The merger is subject to the conclusion of due diligence, regulatory approvals and definitive agreements, Scitex said.
During the second quarter, Scitex Vision reported revenue of $20.8 million, a decrease of 13% from $23.9 million in the second quarter of 2001. Operating income was $200,000, down from operating income of $2.9 million in the second quarter of 2001.
Scitex did not release financial results for Aprion in the second quarter, but did say it was the first quarter in which the company recognized revenues for the sale of its Shaldag systems. By the close of the second quarter, Aprion had shipped 14 systems and was progressing satisfactorily towards the conclusion of additional beta systems, Scitex said.
Published by Globes [online] - www.globes.co.il - on 6 November, 2002