Xaar completes acquisition of UK inkjet systems peer FFEI

(Alliance News) - Xaar PLC has completed the acquisition of FFEI Ltd, an integrator and manufacturer of industrial digital inkjet systems and digital life science technology, it said on Monday.

Cambridge, England-based Xaar also is a provider of inkjet printing technology. It is paying GBP3.7 million in initial cash for FFEI on completing, reflecting FFEI's free cash reserves. It will pay an additional GBP5.4 million in deferred consideration over the next three years.

The deal for Hemel Hempstead, England-based FFEI will accelerate Xaar's growth strategy and enable to it to capture additional opportunities in vertically integrated solutions, it said.

Moreover, additional capabilities from FFEI will allow customers to reduce their development timescales and shorten their time to market, Xaar said.

FFEI has a reputation for innovative imaging solutions, Xaar asserted, with its core specialisms being in print systems and printbar manufacturing.

In the financial year that ended March 31, FFEI generated revenue of GBP9.9 million, with an operating margin of 9%. Xaar said it expects the acquisition to be "slightly earning accretive" in the first full year of ownership.

FFEI Chief Executive Officer Andy Cook said the acquisition by Xaar "represents a fantastic opportunity for the business to develop and grow".

Xaar shares were up 0.1% at 185.60 pence in London on Monday morning.

By Amrit Sahota; newsroom@alliancenews.com

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