Electronics For Imaging Inc. of Freemont, California, has purchased Optitex Ltd., a developer of integrated 3D design software aimed at the textile industry’s digital transformation – for the adoption of so-called fast fashion. Privately-held Optitex is to be integrated into EFI’s Productivity Software business unit.
EFI explains the maximum purchase price of Optitex is approximately US$52.8 million, which includes a US$20 million upfront cash payment, US $3 million of which was placed into escrow, and annual cash earnout payments over three one-year periods of up to an additional US$32.8 million in total.
Payment of each tranche of the earnout is contingent upon the achievement of annual profitability and growth targets, EFI explains, with the revenue targets in the three earnout periods exceeding US$73 million in the aggregate in order to achieve the full earnout payment. EFI explains the acquisition is not expected to be material to its Q2 results and the purchase is expected to contribute US$4 million to US$6 million in revenue for the balance of 2016 and be neutral to EPS during that time.
“We are thrilled to add the Optitex team and its fast-growing base of industry-leading customers to the EFI family,” said Gabriel Matsliach, Senior VP and GM, EFI Productivity Software. “Optitex technology, combined with EFI Reggiani digital printers, will expand our textile ecosystem and help our customers set new standards for time-to-market, on-demand manufacturing, cost efficiency and automation in the textile industry.”
Asaf Landau, CEO of Optitex, and approximately 100 members of the company have joined EFI, with Landau serving as EFI Optitex’s General Manager. Optitex has offices in the U.S., Italy, India, Hong Kong and Israel.
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