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Managing directors, Ian Clare and Michael Laird, jointly announced the merger of their two companies yesterday to take effect from today, Friday, 1st September.
The amalgamation will see the two high profile competitors join together with CyraChrome subsumed into DES. Both men assure customers and suppliers alike that for the immediate future it will be “business as usual.” The new company, which will trade as DES, will have the most comprehensive portfolio of digital imaging products, consumables and services on the market, including leading brand names in digital proofing (CGS and EFI), printing (EPSON, Canon, Grapo) and colour management (Chromaticity).
The newly merged entity will have a turnover in excess of $30 million and a combined workforce of more than 90 employees with offices and support staff in all major centres.
“I would like to extend a warm welcome to all CyraChrome customers and staff and look forward to the start of an exciting new phase in the development of our business,” said Ian Clare.(top) “As leading suppliers of integrated digital imaging solutions, our two companies share many common goals such as a belief in innovative technology, a commitment to customer support and the development of highly trained product specialists.”
“The pace of change in today’s digital environment demands that suppliers continue to evolve and improve their product offerings to meet customers’ needs. This is a goal we both share passionately.”
Michael Laird, who will take up a position as shareholder and director of the enlarged company, said the pooling of resources would enable both companies to deliver enhanced levels of customer support and a greater depth of technical expertise.
“The fit between CyraChrome and DES is extremely good and while there are some areas where we overlap, we each have complementary strengths in specific markets. DES, for example, has long been a leading playing in the CAD and GIS sectors while CyraChrome is well-known in the packaging and flexo market.”
“The combination of our two sets of capabilities, particularly in terms of expertise in colour management and digital workflow optimization, will create the most complete specialist digital systems supplier in the graphics market.”
The companies are a good fit with DES being particularly strong as an importer of proofing substrates, which is the most lucrative part of the proofing market. On the other hand CyraChrome was early into digital proofing with its ORIS product and has the largest installed base of wide format proofing systems in the industry. While undoubtedly there is some overlapping product lines, the enlarged company’s breadth and depth in the market will make it very difficult for any supplier to walk away.
Following the merger, all staff members from CyraChrome and DES will be retained. The new entity will maintain a sales and service presence in all states and continue to support and maintain all products currently offered by CyraChrome and DES.
Looking to the future, Ian Clare emphasised that the merger is not just an end in itself but rather a platform from which to explore new business opportunities. Digital proofing, one of the main drivers behind both businesses, is recognized as an industry that has matured since its introduction seven years ago. Both principals recognized the lack of new growth opportunities in the sector and the valuable synergies that could be realized by merging.
According to Ian Clare the industry can expect the ‘new’ DES to be a company with more resources to dedicate to service and development. Customers will benefit by having more service personnel available in all major centres.
“I would like to extend a warm welcome to all CyraChrome customers and staff and look forward to the start of an exciting new phase in the development of our business,” said Ian Clare.(top) “As leading suppliers of integrated digital imaging solutions, our two companies share many common goals such as a belief in innovative technology, a commitment to customer support and the development of highly trained product specialists.”
Michael Laird, who will take up a position as shareholder and director of the enlarged company, said the pooling of resources would enable both companies to deliver enhanced levels of customer support and a greater depth of technical expertise.