X-Rite buys GretagMacbeth to create global colour giant

The surprise deal, between US-based X-Rite and Swiss-based Amazys, which makes GretagMacbeth, will see a global hegemony over high-end colour management once the companies come together in Q2 this year. It brings together leading industry players who have signed up as strategic partners with the two – Xerox and Komori with X-Rite, and Heidelberg and HP with Amazys. Between them the two companies have applied for 231 patents in colour management over the past two years and occupy an almost unassailable position in the colour industry.

Both companies manufacture hardware and software and provide colour services to printers and designers in the graphic arts as well as other applications in industrial and fashion. In Australia and New Zealand X-Rite is represented exclusively by David Mulligan of ColoRite, who has termed the takeover as " good for the industry, good for the technology and good for the customers." GretagMacbeth is imported by a number of suppliers including Heidelberg, CyraChrome and DES.

In terms of scale X-Rite is the larger company although both have similar revenues. The US X-Rite has the larger global reach while GretagMacbeth in strong in Europe. According to Michael Ferrara, CEO X-Rite, there will be no redundancy issues with current technology from either company, as “both X-Rite and GretagMacbeth have a policy of servicing products for a minimum of seven years after purchase.

“Combining X-Rite and GretagMacbeth's complementary strengths will enable us to unite the best-of- the-best in terms of innovation, products and talent. Our pooled investment in research and development will accelerate our technological innovation, further enhancing capability and flexibility in products and services,” said Ferrara.

Colour management is a growth area with Amazys reporting a 14.1 per cent growth and revenues of US$100.4 million last year; X-Rite had revenues of US$126 million.

The two companies will continue to operate as separate entities until the deal is complete at which time integration will occur “in a thoughtful, measured manner,” said Ferrara. X-rite executives will get six position on the new board of the company while Amazys will get three.