Hybrid bought by Global Graphics in €80million deal
Published: 14 January 2021 | No comments yet
Global Graphics has successfully completed its acquisition of the Hybrid Software from Congra Software following the passing of a shareholder resolution at a General Meeting held on 8 January 2021.
HYBRID Software is a group of software development and marketing companies focused on enterprise software for the graphic arts industry, with a strong focus on labels and packaging. It becomes the fourth subsidiary company in the Global Graphics group and sits alongside Global Graphics Software, Meteor Inkjet and Xitron.
The acquisition roughly doubles the size of the Global Graphics group of companies in terms of headcount, expanding the global workforce to around 250 people. It adds several more operating locations to the group through Hybrid Software’s offices in Luxembourg, Belgium, Germany, Italy, France and the USA. Global Graphics typically invests about one third of its revenues into R&D each financial year and has a strong software development team, which is now expanded to more than 75 engineers with the addition of Hybrid Software.
Global Graphics is dedicated to developing software and hardware solutions for graphics and industrial inkjet printing and has earned a reputation for innovation, with several of its companies being recognised with prestigious industry awards and, in the case of both Meteor Inkjet and Global Graphics Software, with the coveted Queen’s Award for Enterprise. It will continue to be a key supplier of original equipment manufacturer (OEM) technology and, through Hybrid Software’s domain expertise in labels and packaging, a customer-focussed supplier of solutions for print service providers and converters as well as OEMs.
Guido Van der Schueren, chairman of Global Graphics, 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. Exciting times lie ahead as we launch new initiatives in response to customer demands, ranging from innovative new products to subscription-based licensing models.’
Global Graphics’ CEO Mike Rottenborn said, ‘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. We’ll be able to take Hybrid Software’s expertise in file preparation and enterprise production workflow gained in the labels and packaging segments and expand this out across all the industry segments we serve.’
Hybrid Software has been an integrator of the Harlequin RIP for many years inside their CLOUDFLOW workflow product and in recent times has been working at a technical level with Global Graphics Software on the Fundamentals digital front end. Michigan-based Xitron, also a long-standing customer for the Harlequin RIP, is active in the commercial printing industry providing pre-press and digital solutions to OEMs. Its Navigator DFE supports drive electronics from sister company Meteor Inkjet, a leading developer of printhead driver solutions for industrial inkjet systems. Together with Global Graphics Software, developer of the Harlequin RIP and other technology components for digital printing, the Global Graphics group offers the market a compelling stack of solutions for graphics and industrial inkjet printing.
Consideration for the acquisition of Hybrid Software was €80 million which was satisfied in full by issuing 21,074,030 Global Graphics shares to Congra.
For the year ended 31 December 2020, it is estimated that Hybrid Software’s revenue will be around €17 million and EBITDA will be around €5.5 million (subject to audit). Hybrid Software will be included in the group’s consolidated financial statements with effect from the reporting period that includes the closing date of the acquisition, i.e. for the year ending 31 December 2021, starting with the condensed consolidated financial statements for the six months ending 30 June 2021.