Kodak Finalizes Encad Acquisition, Forming Encad, Inc.
Press release from the issuing company
ROCHESTER, N.Y. & SAN DIEGO---Jan. 24, 2002--Eastman Kodak Company has finalized the acquisition of Encad, Inc., forming Encad, Inc. - A Kodak Company. The entity is a wholly owned subsidiary of Kodak that is focused exclusively on the wide-format inkjet printing industry. The purchase price was approximately $25 million, paid with Kodak stock.
The acquisition makes Encad, Inc. one of the largest sellers of wide-format inkjet products, a $2.4 billion output market growing at approximately 15% annually. The new company is a complete wide-format inkjet resource and provides customers with a full set of offerings, including inkjet printers, inks, media, software, and service. By combining Kodak's leading-edge printer technology, heritage in ink, media, imaging and color science with Encad's pioneering wide-format expertise and industry relationships, Encad, Inc. offers a portfolio of solutions unmatched within the wide-format inkjet industry.
"The combination of our companies will continue to drive growth within this industry. Together, we have the dedicated research, development and manufacturing expertise that will enable us to achieve this,'' said Regina Pizzoli, the recently named CEO of Encad, Inc. "Kodak has the global resources, complementary expertise in media and inks and multi-national market presence that will extend products and services well beyond the established customer base developed by Encad prior to the acquisition''.
"We're glad to be a part of the world's largest imaging company,'' said Terry Vandewarker, recently named President of the new entity. "As a long term player in this industry, we will continue to focus on developing even broader, more technologically-advanced solutions that serve the needs of our customers in wide-format inkjet.''
The acquisition will integrate Kodak's new 5260 Inkjet Printer with the existing line of ENCAD wide-format inkjet printers - creating the broadest line of wide-format inkjet printers in the industry. It uniquely provides a choice of print head technology - piezo or thermal - offering an array of price/performance options to suit virtually any customer's workflow needs.
A complete transition plan is being implemented to ensure ongoing availability of products and services to the respective customer base of each company. "We plan to leverage the best of each company to benefit wide-format inkjet customers'', said Pizzoli. "For the next 60 days, each organization will continue to provide sales, service, and customer support to their respective product portfolio within their original customer base. Once we complete this transitional period, all sales, service, and customer support will be sourced from Encad, Inc., headquartered in San Diego, CA or its regional sales offices worldwide.''
Encad, Inc. - A Kodak Company
Encad, Inc. is a leading innovator in digital image printing technology, offers a broad line of wide-format color inkjet printers, software utilities, and a complete selection of system tested indoor and outdoor inks and media. Encad, Inc.'s products deliver superior color images quickly and cost-effectively, and are designed to increase user productivity in a variety of applications including point of purchase graphics, photographic enlargement, graphic arts, fine art, textile design, and computer-aided design. The company's products are sold and serviced through a worldwide network of distributors and value-added resellers.
The creation of Encad, Inc. clearly demonstrates Kodak's commitment to the wide-format inkjet market and is yet another way in which Kodak is participating within the $225 billion infoimaging industry, driven by the convergence of images and information technology. Infoimaging unites three closely related imaging markets - devices/software, infrastructure and services/media - that enable people to more easily use images as a fast, effective means to share them as information, entertainment or memories.
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