Printcafe Accepts EFI Offer
Electronics for Imaging is the winner of the Printcafe sweepstakes.
The Foster City, Calif.-based imaging solutions company signed a merger agreement with Pittsburgh-based Printcafe to purchase all outstanding shares of the company for $2.60 a share.
The deal will expand EFI's software product offerings for the professional print market, Guy Gecht, chief executive officer of the company, said. EFI's imaging and workflow solutions together with Printcafe's enterprise management software, helps to accelerate the adoption of digital printing management from procurement to production, an EFI spokesman said.
Creo Inc. of Burnaby, British Columbia, recently tried to increase its stake in the company, offering $1.30 a share for all outstanding shares. Printcafe then signed an agreement with EFI stating it would not consider any takeover bids. Creo raised its offer to $3 a share, but reconsidered as it refused to enter a bidding war.
"We have received information that leads us to revise our financial analysis of Printcafe's value to Creo," Amos Michelson, chief executive officer of Creo, said. "[We] no longer feel that Printcafe is sufficiently valuable to warrant a continuation of the bidding process. We did not feel that we were permitted to participate in the bidding process in a manner that would allow us to maximize our offer to Printcafe's stockholders."
When finalized, the acquisition will allow Printcafe to "improve the depth of our printer solutions on the shop floor and in the back office," Marc Olin, president and CEO of Printcafe, said. "EFI's reputation for digital printing and its emphasis on open standards architecture will provide our customers with accessible solution to grow their businesses."
Under the terms of the agreement, Printcafe stockholders will vote whether to receive the merger consideration in cash or shares of EFI's common stock. EFI plans to repurchase approximately the same number of shares issued in connection with the merger. EFI expects the transaction to close in the second quarter of 2003, pending the approval of Printcafe stockholders.