Creo Explains Their Investment of $23.6 Million in printCafe
Press release from the issuing company
VANCOUVER, B.C.--Jan. 3, 2002--Creo Products Inc. has invested US$23.6 million in printCafe, Inc., as part of a US$39.6 million private placement of equity and debt. printCafe is the leading provider of print management software for both printers and buyers in the printing and publishing industry.
Other investors in this financing include Mellon Ventures, Inc.; HarbourVest Partners, LLC of Boston, MA; J & W Seligman; and Weiss, Peck & Greer, LLC.
The US$23.6 million investment by Creo of secured long-term debt will increase the company's voting interest in printCafe to approximately 40 percent from 17.24 percent. Representation on the printCafe board of directors will increase to two seats from one as a result of this investment. Amos Michelson, chief executive officer of Creo, will continue to serve as chair of the printCafe board of directors and one additional Creo representative will be named shortly. Creo will account for the investment in printCafe under the equity method.
"The Creo vision for Networked Graphic Production leads the graphic arts industry into a fully digitized world, from the ideas generated on the creative desktop to the delivery of the finished products. We are developing products and integrated solutions for this market to provide greater value and efficiency throughout the entire production process. printCafe is an integral part of that solution,'' said Amos Michelson, chief executive officer of Creo. "By integrating content production workflows from Creo with print management systems from printCafe, our customers will be able to take advantage of a web-enabled, fully integrated production environment.''
"We believe that Creo's confidence in printCafe is a direct reflection of our people, our technology, and the viability of our market,'' said Marc Olin, president and chief executive officer of printCafe. "We are very pleased to be entering the new year with a strong balance sheet that allows us to power our own success from here. With significant obligations repaid, printCafe is operating from a position of financial strength. We've paved the way for increased growth and revenue in 2002 and well into the future.''
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