Leading mass customization company Cimpress N.V. (CMPR - Free Report) inked a definitive agreement to acquire leading Austrian web-to-print business druck.at Druck- und Handelsgesellschaft mbH (druck.at), as it attempts to expand its operations and build an operational platform that optimizes production and supply chain of its products.
The deal, valued at a base price of €23.3 million ($24.7 million), is expected to conclude in the fourth quarter of fiscal 2015, subject to antitrust approvals and customary closing conditions. The consideration includes a cash payment of €20 million ($21.2 million), payable upon the close of the transaction, and a deferred payment of €3.3 million ($3.5 million), which will be paid in cash or stock in 2017.
The deal is expected to be neutral to Cimpress’ fiscal 2015 results. Cimpress is financing the transaction using its existing debt facility.
The deal is in line with Cimpress’ strategy to leverage a common software-enabled operational platform across multiple products, with optimization of production and supply chain. Further, Druck.at’s product portfolio and impressive knowedge of Austrian web-to-print clientele will augment and deepen Cimpress’ foothold in the market.
Also, Druck.at will benefit from this deal as it leverages Cimpress’ scale and global operational and supply chain advantages.
Earlier this month, Cimpress agreed to acquire Exagroup SAS, an established web-to-print business in Europe, for €91.5 million. Cimpress intends to leverage Exagroup’s product scale and sophisticated network of outsourcing partners to augment its own product portfolio. In addition, Cimpress expects the acquisition to unlock technological and operational synergies and offer cost and scale advantages.
Cimpress, formerly known as Vistaprint, recently changed its corporate name to distinguish and reposition its brand identity. The company boasts an impressive portfolio of customer-centric brands like Vistaprint, Drukwerkdeal, Albelli and Pixartprinting.
Cimpress currently sports a Zacks Rank #2 (Buy). Other stocks in the business services sector which look promising include CBIZ, Inc. (CBZ - Free Report) , ServiceMaster Global Holdings, Inc. (SERV - Free Report) and Multi-Color Corp. (LABL - Free Report) , each carrying a Zacks Rank #1 (Strong Buy).
Note: €1= $1.0588