Kornit Digital buys UK co Custom Gateway

Ronen Samuel  / Photo: Eyal Izhar, Globes

The Israeli digital textile printing company also reported second quarter results which beat the analysts' expectations.

Israeli digital textile printing company Kornit Digital (Nasdaq: KRNT) has announced its financial results for the second quarter of 2020 and that it is acquiring UK cloud-based software workflow solutions company Custom Gateway. No financial details about the acquisition were disclosed but market sources estimate that Kornit Digital is paying about $17 million for the British company.

Kornit Digital CEO Ronen Samuel has told "Globes" in the past that the company was seeking workflow solutions. "These are solutions that will allow the consumer to print what they want and where they want. Workflow solutions control the entire process from receiving orders through to printing and delivery and including feedback from the customer."

Kornit Digital also reported strong second quarter results which beat the analysts' predictions. Revenue was $37.4 million, down 17.4% from the corresponding quarter of 2019 but higher than the analysts' expectations of $33.2 million. The Rosh Ha'ayin-based company reported a non-GAAP net loss of $1.3 million (-$0.03 per share), which also beat the analysts' expectations.

Kornit Digital's share price rose 1.38% on Nasdaq yesterday to $54.45, giving a market cap of $2.23 billion.

Published by Globes, Israel business news - en.globes.co.il - on August 12, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Ronen Samuel  / Photo: Eyal Izhar, Globes
Ronen Samuel / Photo: Eyal Izhar, Globes
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