HP on verge of buying Scitex Vision for $240m
If the negotiations fail, Deutsche Bank, which is accompanying the sale, will float Scitex Vision on Nasdaq at the same company value.
Gitit Pincas and Shai Shalev 21 Mar 05 16:14
IDB Holding Corp. (TASE: IDBH) is in advanced negotiations to sell Scitex (Nasdaq: SCIX; TASE: SCIX) subsidiary Scitex Vision. Sources inform “Globes” that Scitex Vision is on the verge of being sold to printer and PC giant Hewlett-Packard (NYSE:HPQ) for $240 million. The sources added that under the terms of the deal, Hewlett-Packard would conduct due diligence for Scitex Vision over the next 60 days.
The parties agreed that if the negotiations ultimately fail, Deutsche Bank, which is accompanying the sale, would float Scitex Vision on Nasdaq at the same company value of $240 million.
IDB said in response that it was examining a number of options for selling Scitex Vision, which were currently in "preliminary stages."
Scitex recently examined various alternatives for Scitex Vision, which develops and manufactures wide format digital printers for printing houses and the consumer market. Scitex's board considered a sale, a flotation on Nasdaq, and distributing shares as a dividend in kind. IDB subsidiaries Clal Industries and Investments (TASE: CII) and Discount Investment Corporation (TASE: DISI) own 24.7% and 24.4% of Scitex, respectively; Suny Electronics (TASE: SUNY) owns 8.3%, and Mivtach Shamir Holdings (TASE:MISH) owns 5.5%.
In the end, after a number of international companies considered acquiring Scitex Vision, IDB decided to negotiate with Hewlett-Packard. Hewlett-Packard previously acquired Benzion (Benny) Landa's Indigo for $720 million, and has invested $200 million in building a plant for the manufacture of ink jets for printers in Kiryat Gat.
Scitex Vision, managed by Dov Ofer, has 480 employees worldwide, and has been growing nicely since 2003. Scitex Vision is now basically Scitex's only activity, after it sold Scitex Digital Printing to Eastman Kodak (NYSE:EK) for $250 million.
more to follow
Published by Globes [online], Israel business news - www.globes.co.il - on March 21, 2005
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