In October 2006 FFEI the Fujifilm subsidiary in the UK implemented a management buy out (MBO) from Fujifilm to become an independent company. At the time this raised a certain degree of comment but no major statements about the rationale for MBO were given either by Fujifilm or FFEI.

What were the reasons for FFEI to become an independent company at the time when Fujifilm was changing its business model with a number of acquisitions of other companies? FFEI is a major supplier of CtP systems and workflow solutions to Fujifilm, so why would it want to become independent when Fujifilm states that CtP is the driving force for its whole business? In fact it was largely because of the new strategy of Fujifilm changing its business model with acquisition of other companies that almost forced FFEI to become an independent company. Traditionally FFEI had been a supplier of sophisticated color imaging systems first under its earlier name of Crosfield Electronics, and then under its FFEI name. In this it was essentially an integrator of technologies in building innovative products. During all this time it had to adapt to changing markets. Its position as one of the most innovative and market-leading companies in color changed with the development of desktop publishing, desktop color and desktop color scanning. As the “high-end” color market ended the company was forced into building new markets in computer to film, digital workflows and CtP. As an integrator it had to constantly look for the next market opportunities and create products for such evolving markets. In the same way as a number of similar companies, FFEI identified inkjet printing technologies and digital printing as a core future market in which to operate.

In 2006 Fujifilm started to implement its strategy of moving into the inkjet market, and in particular the supply of consumables for this market. In this in 2006 it made three key acquisitions. These were of the UK based ink company Sericol, the UK based pigment and dyes companies Avecia, and the U.S. based Dimatix, a major supplier of inkjet print heads under the Spectra brand, and of advanced nano-particle material disposition solutions. It is understood it may also have attempted to buy other companies within the inkjet area and may still be attempting to do so. While this strategy is seen as a core of a future Fujifilm business it was also a very detrimental strategy for the ongoing position of FFEI.