Israeli digital textile printing company Kornit Digital (Nasdaq: KRNT) has risen strongly after announcing the launch of a cloud platform to accelerate the digital transformation of the textile industry.
Kornit's share price rose 4.3% on Wall Street yesterday, giving a market cap of $3.6 billion. The share price has risen 260% from its low-point in early April.
In its announcement yesterday, Kornit said, "The inflection point in the textile industry and the massive shift to e-commerce continues to accelerate the need to digitally transform the supply chain and adopt on-demand sustainable textile production. The newly formed business line will focus on enabling brands, retailers, and marketplaces to realize the benefits of digitization by connecting to the most suitable on-demand production and logistics operations, while ensuring consistency, quality and brand integrity."
In part the new activity is based on the $17 million acquisition of UK company Custom Gateway in August. The new activity will be managed by Guy Avidan who until now has served as CFO. Avidan will be replaced by former Orbotech CFO Alon Rozner.
Kornit Digital CEO Ronen Samuel said, "Interest in adopting our cloud workflow platform and network for on-demand sustainable production is extremely strong. We believe there is a huge opportunity here for Kornit to build a significant incremental business and leverage the success of the Custom Gateway acquisition, which serves as the foundation for this strategic initiative. I am confident that Guy will lead this strategic initiative to great success and would like to thank him for his contribution to Kornit’s success in his years of service as our CFO."
Published by Globes, Israel business news - en.globes.co.il - on November 24, 2020
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