Kodak takes major stride into digital printing
Kodak takes major stride into digital printing
Feb 1, 2005: Eastman Kodak has bought Creo for US$980 million in a bid to make its mark in the digital printing market as it tries to recover from the decline in its traditional film business.
Kodak said that it hopes this acquisition will provide customers with all of the products and services they need to be successful in a blended production environment, where digital, traditional and hybrid print jobs are converging.
Creo product lines include software and hardware for computer-to-plate imaging, systems for digital photography, scanning, and proofing, as well as printing plates and proofing media.
Daniel A. Carp, Kodak's chairman and chief executive officer, said that graphic communications represents one of the three pillars of Kodak's digitally oriented growth strategy.
"The purchase of Creo strengthens that pillar, and essentially concludes the company's acquisition plan, announced in September 2003.
"While this acquisition will result in some modest earnings dilution for the remainder of 2005, we remain committed to our operational earnings guidance range of $2.60 to $2.90 per share for 2005. We believe we have opportunities to achieve cost and revenue synergies by combining Creo with our existing businesses."
Antonio M. Perez, Kodak's president and chief operating officer, added: "As the pioneer of digital prepress systems and the leader in workflow, Creo will accelerate our effort to bring more products to market sooner, for the benefit of our customers and our shareholders.
"Creo will benefit from this transaction because Kodak brings them the size and scale necessary to increase their presence in the market."
A spokesperson for Kodak in Australia was unavailable to comment on what impact this new move would have on the local market yet.
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