Global Graphics SE (Euronext: GLOG) the developers of software for digital printing including the Harlequin RIP®, announces today that it has acquired the entire issued share capital of TTP Meteor Limited (“Meteor”), specialists in printhead driver systems, from the TTP Group plc (“TTP”) based near Cambridge, UK.
Meteor enables industrial inkjet, graphic arts and commercial printing applications through the provision of world-leading drive electronics and software. Through strong relationships with industrial inkjet printhead manufacturers including Fujifilm Dimatix, Konica Minolta, Kyocera, Ricoh, SII Printek, Toshiba TEC and Xaar, Meteor supplies production-ready electronics and software to print equipment manufacturers world-wide.
TTP has been involved in developing leading edge printing technologies since 1987. From 2006, printhead drive electronics have been supplied under the Meteor brand. With this acquisition, Meteor becomes a wholly-owned subsidiary of Global Graphics SE. Meteor will operate as an independent, standalone entity and will continue to be led by Clive Ayling who has developed Meteor into a successful business. It is expected that the company name will change from TTP Meteor Limited to Meteor Inkjet Limited.
Gary Fry, Global Graphics’ CEO said, “Meteor has established itself as an influential player in the inkjet market and has a deep understanding of the science and engineering underpinning digital printing. This acquisition is strategically important for Global Graphics because it means we can offer a broader solution to inkjet press manufacturers by combining our software solutions with Meteor’s industrial printhead driver solutions.
“Healthy growth is predicted for the inkjet segment of digital printing where there continues to be a vast amount of innovation as jetting technology is applied to an increasingly diverse range of applications such as ceramics, textiles or décor. Global Graphics is already emerging as an important partner to the industry’s leading manufacturers and Meteor adds to our capability, making us a very compelling proposition in the market. We already share joint customers and our goal is to substantially grow this base.”
Clive Ayling, Meteor’s managing director said, “Meteor has an established record of success in delivering robust and reliable printhead driving solutions for a myriad of applications. Global Graphics values this success and recognizes the importance of our independence in delivering the diverse range of solutions our customers require. We are looking forward to working with Global Graphics to accelerate the growth of our business whilst we continue to deliver the world-class products and support that our customers have come to expect.”
Rob Day, TTP’s head of print technology said, “having nurtured Meteor through its initial technology and IP development phase into a mature and profitable business, we are delighted to see it become a subsidiary of Global Graphics. There is immense strategic synergy between the two companies. This will allow the Meteor team to broaden its offering to existing customers, and accelerate the acquisition of new ones. TTP's Print Technology Division will continue to develop novel printing systems and print technology, and looks forward to working with Meteor's products in future systems integration projects.”
Consideration for the acquisition is £1.2 million in cash followed by a maximum deferred consideration of £3.6 million. The deferred consideration is payable in cash and is contingent on revenue during the ten year period from 6 December 2016 until 31 December 2026.
For the year ended 31 March 2016, Meteor generated sales of £2.5 million and a loss before tax of £0.2 million. For the eight months ended 25 November 2016 Meteor’s management accounts showed sales of £2.5 million and a profit before tax of £0.3 million. The acquisition is expected to be earnings enhancing in the financial year ending 31 December 2017.