U Eastman Kodak/U yesterday agreed to buy Scitex Digital Printing for $250m in cash. Scitex Digital Printing, a subsidiary of Tel Aviv-based Scitex Corporation, makes commercial inkjet printers used to print bills and invoices.
The deal is part of Kodak’s strategy to shift from conventional film products to digital technology. In September Kodak cut its dividend 72 per cent to help finance its plan to spend about $3bn by 2006, largely on acquisitions.
Kodak expects Scitex Digital Printing, based in Ohio, to add about $190m in revenue in its first year as a Kodak subsidiary. It expects the acquisition to be dilutive in the first year and to add to earnings thereafter.
Shares in Scitex, listed on Nasdaq and the Tel Aviv Stock Exchange, were up 7 per cent to $5.30. Shares in Kodak fell just over 1 per cent to $24.24.