Domino Printing Sciences PLC – Acquisition09.04.2012
Domino Printing Sciences plc ("Domino" or the "Group") has, through its wholly owned subsidiary Domino Deutschland GmbH purchased the customer database of Mikrojet Systems GmbH.
Mikrojet is based near Hamburg and is engaged in the development and sale of ink jet printing and ancillary equipment for the German commercial printing and mailing sectors. The acquisition of the database will enhance the Group's sales and marketing presence in Germany, a major market for Domino's products.
Domino has also purchased the intellectual property rights in a mail base product developed by Mikrojet. Mail bases are conveyors and feeding equipment used in conjunction with ink jet printers for addressing and processing mail. They are key components in the Group's digital printing systems for the direct mail sector worldwide.
The consideration payable is €300,000 funded from Domino's cash resources. In addition Domino will pay commission to Mikrojet in respect of certain sales by Domino during the next three years. The maximum commission payable is €3 million.
Following this purchase Claus Beck, the sales director of Mikrojet and two other employees will transfer to Domino Deutschland GmbH. Mikrojet has also agreed to carry out further development work on the mail base on behalf of Domino.
Philip Easton, Director of the Domino Digital Printing Solutions business, commented: "I am pleased to welcome Claus Beck and key Mikrojet sales personnel into the Domino business. Mikrojet has achieved a very strong market share position in the direct mail sector through a focused approach. This complements our existing mail addressing capability and further strengthens the German team, giving us unparalleled market coverage in this sector in Germany. Looking forward, we expect to leverage this capability in other territories."