Following the passing of a shareholder resolution at a general meeting held on Friday (8 January), Hybrid Software has now become the fourth subsidiary company in the Global Graphics group and sits alongside Global Graphics Software, Meteor Inkjet and Xitron.
The acquisition has roughly doubled the size of Cambridge-based Global Graphics’ group of companies in terms of headcount, taking its global workforce to around 250 people.
It has also added several more operating locations to the group through Hybrid Software’s offices in Luxembourg, Belgium, Germany, Italy, France and the US.
Global Graphics chairman Guido Van der Schueren said: “This acquisition is a great fit strategically. It’s good news for our customers, our employees and our shareholders. We will continue to grow the value of the company by supporting all our stakeholders and reaffirm our intention to remain a listed company.
“As the packaging industry continues its migration to digital printing, there are tremendous opportunities for Global Graphics’ hardware and software solutions, so bringing Hybrid Software into the group will help us grow our share in labels and packaging."
Global Graphics chief executive Mike Rottenborn added: “This acquisition makes Global Graphics stronger than the sum of its parts. Market requirements are changing and it’s important for the future growth of the company that we are positioned to respond.
“Customers are asking for more functionality and we are well placed to offer a broader solution starting with a powerful new digital front-end for the labels and packaging segment. Expect to see new product development for the industrial inkjet market too, which, as it evolves and matures, requires a new generation of software and hardware capabilities."
Consideration for the acquisition of Hybrid Software was €80m (£71.2m), which Global Graphics satisfied in full by issuing nearly 21.1 million shares to Congra.
For the year ended 31 December 2020, it is estimated that Hybrid Software’s revenue will be around €17m and EBITDA will be around €5.5m, subject to audit.
Global Graphics’ share price rose briefly following the news of the completion of the deal yesterday to €3.58 but dropped back to €3.50 later on, and remained at the same price at the time of writing today. It had reached a 52-week high of €4.20 in December, having dropped as low as €2.19 in mid-March.
