Hewlett-Packard widens imaging footprint
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Acquires Scitex Vision for $230m.
15th August Hewlett Packard is to purchase Israeli printer maker Scitex Vision for $230 million.
The deal, the first since Mark Hurd became CEO of the technology heavyweight, hints that Hurd remains committed to HP's highly profitable printing business.
Scitex Vision specialises in wide and super-wide format printers, used mainly in the production of advertising material and packaging. The $230 million cash deal is expected to close within 90 days, subject to certain closing conditions.
"The purchase of this business from Scitex Vision will further accelerate HP's push into the rapidly growing digital printing market," said Enrique Lores, VP and general manager, large format business, HP.
HP has been under pressure from investors to sell its printing business, with many market watchers predicting that a spin off would deliver most value to shareholders.
To date, HP executives have resisted these calls, and the Scitex acquisition will dampen expectations of a spin off.
"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," said Lores.
