Xerox Strengthens Leadership in Production Color Printing Through Acquisition of Industrial Inkjet Provider, Impika

Wednesday, February 27, 2013

Press release from the issuing company

NORWALK, Conn. — Xerox has acquired Impika, a leader in the design, production and sale of production inkjet printing solutions used for industrial, commercial, security, label and package printing.

Impika offers a portfolio of aqueous (water-based) inkjet presses based on proprietary technology. Impika product lines include iPrint™, a range of continuous feed production printers that print at speeds as fast as 375 meters per minute, and iPress™, a range of graphic communications digital presses with resolutions of up to 2400 x 1200 dpi. Impika, based in Aubagne, France, sells its products to print providers through its direct sales force and through a global network of channel partners, including Xerox, which has been reselling the Impika brand in Europe since 2011, and recently expanded to several developing markets.

In addition to Xerox’s existing xerographic production presses, the company developed and markets the world’s only high-speed waterless inkjet presses, theXerox CiPress™ Production Inkjet Systems. The production inkjet market is projected to grow 21 percent annually through 2015, according to market research firm I.T. Strategies. By adding Impika technology to its offerings, Xerox will now go to market with the industry’s broadest range of digital presses, strengthening its leadership in digital color production printing.

"A hallmark of Xerox’s long-term success is our focus on innovation, and Impika has demonstrated an innovative approach to advanced production inkjet printing that complements Xerox’s technology," said Jeff Jacobson, president of Xerox’s Graphic Communications Operations. "We have established leadership in serving the graphic communication marketplace. With Impika as part of our broader set of solutions, we’re bolstering our brand strength and better serving the market with digital products, solutions and resources to meet the needs of print providers so they can satisfy their clients and grow their businesses."

"We’ve succeeded in developing one of the industry’s most formidable product lines," said Paul Morgavi, president and chief executive officer, Impika. "To continue our growth, we need to be part of a leadership organization that has broad global distribution and service, a strong brand, and the same customer-centric culture that we champion. Xerox is a logical fit for our growing business and for our customers, who will benefit from Xerox’s shared focus on innovation to advance digital color printing."

The 55 people of Impika, led by Morgavi, will now report to Jacobson.

Terms of the transaction were not disclosed.

Discussion

By Patrick Henry on Feb 27, 2013

Xerox and Impika made the announcement in a conference call yesterday with nearly 90 trade journalists and analysts. Jacobson noted that the acquisition would strengthen Xerox’s hand in production inkjet, where it is a relative newcomer.

Xerox launched the CiPress waterless inkjet system in 2011, initially positioning it as a solution for transactional printing on low-cost paper. Jacobson said that although the technology has advanced to a point where it is also suitable for commercial production, its solid-ink printing characteristics will not meet the needs of all Xerox customers.

In order to fill that quality requirement, said Jacobson, “we could not have done any better than to acquire Impika.” He said that the French company’s continuous-feed, aqueous inkjet presses would complement CiPress and give Xerox the industry’s broadest portfolio of digital production solutions.

The deal for Impika is a 100% acquisition at a price that Jacobson declined to specify. As Impika a Xerox Company, it will continue to be led by Paul Morgavi, who founded it 10 years ago.

Xerox has been reselling Impika presses in Europe for two years. There is “very little overlap” between the companies’ distribution channels, according to Jacobson.

Going forward, Impika’s R&D activities are to be merged with Xerox’s. Morgavi said that the resources of Xerox would give Impika the help it needs to become an inkjet provider on a global scale. Impika’s present installed base consists of presses at work in “a dozen countries on four continents,” he said.

Asked whether Impika was developing a cut-sheet, B2-format inkjet press, Morgavi replied that the company has a plan to do so. Jacobson affirmed that Xerox wanted to enter the B2 inkjet market and that acquiring this capability had been a part of the discussions leading up to the deal.

The addition of Impika means that “we can reach any customer in the industry now,” declared Jacobson, who has just marked his first anniversary as president of Xerox’s graphic communications operations. “There is not a customer need that we cannot satisfy. We just have to earn that right.”