The announcement by HP that they were to acquire the Scitex Vision organization is obviously interesting, and raises many comments. One of the most interesting points of the acquisition is the value that HP obviously places on the Scitex brand. In this agreement and subject to the closing of the transaction, Scitex Corporation will license its rights to the "Scitex" trade name to HP, and it has also agreed, subject to shareholder approval, to change its corporate name. Scitex Corporation in future under its new and as yet unannounced name it is probable that Scitex will be classified as a passive foreign investment company for U.S. federal income tax purposes in 2005 and/or in subsequent years.

Does that mean that HP will in future decide to utilize the Scitex name for future products aimed at the graphic arts market. It is interesting also as this is the final sale of the major Israeli asset base that was Scitex. Last year I wrote an article called “Thank You Scitex.” In which I thanked Scitex for the tremendous impact they had over many years on changing the graphic arts market. I also speculated that some company would soon acquire its last asset, Scitex Vision.

Scitex Vision is the third of the leading grand format ink jet suppliers to be sold this year. The first was when EFI acquired VUTEk, The second was the acquisition of flatbed specialist Inca Digital by Dainippon Screen. Now HP has acquired Scitex Vision. I am advised that other companies, including Kodak had looked at Scitex Vision and had decided not to go ahead. I wonder why HP has acquired the company. I certainly never understood why EFI acquired VUTEk. It appears to me to be a strange acquisition for the leading independent digital front end, workflow and MIS company. I am less puzzled why HP has acquired Scitex Vision, as there are synergies between the companies.