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HP acquires Indigo

Sep 7, 2001 12:00 AM

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Hewlett-Packard Co. (HP) (Palo Alto, CA) has entered into an agreement to purchase the remaining outstanding shares of Indigo N.V. (Maastricht, Netherlands).
HP currently owns 14.8 million of Indigo’s common shares, representing 13.4 percent of the company’s outstanding shares. Under the terms of the agreement, HP will acquire Indigo’s remaining shares for approximately $629 million in HP common stock and a potential future cash payment of up to $253 million, contingent upon Indigo’s achievement of long-term revenue goals. The transaction is expected to be accretive to earnings per share in its first full year of operation.
Indigo will extend HP’s printing systems portfolio beyond inkjet and LaserJet technology into high-speed, digital color printing. The $200 million company has 1,100 employees, is headquartered in the Netherlands, and has R&D and manufacturing operations in Israel. Upon completion of the transaction, Indigo will operate as a new division within HP’s Imaging and Printing Systems business.
Benny Landa, Indigo founder, chairman and CEO, will become strategic consultant to HP CEO Carly Fiorina.