Pittsburgh, PA January 24, 2003 With two offers to buy it on the table, print e-procurement specialist Printcafe stepped back from the fray to consider its options, appointing a committee to consider its strategic alternatives.
Earlier this week, imaging technology company Creo announced that it had gained control of a majority of shares in Pittsburgh-based Printcafe by entering into agreements to acquire approximately 2.6 million shares of Printcafe common stock from other shareholders at a purchase price of $1.30 per share.
In making its announcement, Vancouver-based Creo also said it had asked the Printcafe board of directors to consider a proposal for Creo to acquire all outstanding Printcafe common shares not owned by Creo at a purchase price of $1.30 per share.
However, following Creo's announcement, Printcafe responded with a press release of its own stating that its board of directors had not received a formal offer from Creo.
The drama intensified further on Thursday when Printcafe announced that it had received an unsolicited offer from Foster City, Calif.-based Electronics for Imaging, a provider of imaging solutions for network printing, to acquire all the issued and outstanding shares of Printcafe's common stock for $2.60 per share. Printcafe said the offer was non-binding and was subject to, among other things, negotiation of a definitive agreement and required stockholder approval.
Faced with these two suitors, Printcafe's board elected to form a committee consisting entirely of independent directors to evaluate and fully consider the current bids and any future acquisition offers.
Printcafe also announced the appointment of its president and CEO, Marc Olin, as chairman of its board of directors. Amos Michelson, Creo's CEO, previously served as the chairman of Printcafe's board.
According to a statement on Printcafe's Web site, Creo originally invested in Printcafe in February 2000 and has continued to increase its holdings, including committing $23.6 million in the form of long-term debt in January 2002. Printcafe services are also sold through the Creo direct sales force.