It would be an understatement to say that the offers by Creo and Electronics For Imaging (EFI) to acquire all Printcafe stock have stirred tremendous interest. Most of the time, the Graphic Arts Industry is fairly staid. The last time so much buzz was generated in the industry’s software space was when Printcafe was “born fully formed on the half shell” (or so it appeared) at the height of Dot Com Mania.

When two companies line up to dance with a third, and all are publicly held companies, discretion is the better part of valor for the pursued. Printcafe declined to provide any comment to WhatTheyThink.com about the offers. And while WTT correspondent, Gail Nickel-Kailing, was able to speak with Creo and EFI, their answers were guarded during this sensitive time.

We spoke with Rochelle van Halm, Media Relations Manager, Creo, and Joseph Cutts, CFO, EFI.

Quick Notes: Since we were unable to speak with officials at Printcafe, we decided to publish what we know. Sources close to Printcafe say the company was surprised that Creo planned to make an offer for all outstanding shares even though Printcafe has two Creo executives on their board. Why are two Creo employees on Printcafe’s Board with one of those as Chairman - Amos Michelson, Creo’s CEO? It is not uncommon for a company who has an equity position in another to be granted Board seats. Also not uncommon is to have a significant owner (Creo owns just over 30% of Printcafe) be the chairman of the board. We were told that some at Printcafe were mostly surprised to see the low price Creo offered. Certainly price is subjective and a fair price is in the eye of the beholder. Operationally, business is being conducted as normal.

One Final Note - Legally and Literally: What recourse do the shareholders who plan to tender their shares to Creo have now that there is a better price on the table? (See related news item.) It appears that Creo is not worried and believes they legally have the 55% ownership even though the transaction has not literally happened. EFI is not commenting on that topic, neither is Printcafe. But we have been told that the shareholders who made those agreements with Creo are examining their legal options before it is literally consummated. Once Creo’s equity position is literally 55%, it is believed that EFI will then have little or no chance of acquiring Printcafe.