Electronics For Imaging, Inc. (Nasadq: EFII) has announced the acquisition of privately held Israeli company Optitex Ltd., based in Petah Tikva. Optitex produces 3D design software for the textile industry. Optitex will be integrated into EFI’s Productivity Software business unit.
The deal is worth up to $52.8 million. $20 million was an upfront cash payment, $3 million of which was placed into escrow, and annual cash earnout payments will be made over three one-year periods of up to an additional $32.8 million in total.
“We are thrilled to add the Optitex team and its fast-growing base of industry-leading customers to the EFI family,” said Gabriel Matsliach, senior vice president and general manager, EFI Productivity Software, “Optitex's technology, combined with EFI Reggiani digital printers, will expand our textile ecosystem and help our customers set new standards for time-to-market, on-demand manufacturing, cost efficiency and automation in the textile industry.”
“We are very excited to join the EFI family,” said Asaf Landau, CEO of Optitex, “EFI’s global presence, holistic solution approach, strong professional services abilities, and growing portfolio of innovative textile industry-specific products will be of great benefit to the leading companies we serve worldwide in the fashion, automotive, aerospace and technical textiles industries. I am truly enthusiastic about what is to come for these industries in the years ahead.”
EFI said that while the acquisition was not expected to be material to its second quarter results, it was expected to contribute $4 million to $6 million in revenue for the balance of 2016 and to be neutral to EPS during that time.
Landau and the approximately 100 members of the Optitex team have joined EFI, with Landau serving as EFI Optitex’s general manager.
Optitex has offices in the US, Italy, India, Hong Kong and Israel.
Published by Globes [online], Israel business news - www.globes-online.com - on June 19, 2016
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