Scitex Reaches Agreement To Buy Leaf Systems
Mar. 11, 1992
SOUTHBORO, Mass. (AP) _ Computerized photographic equipment maker Leaf Systems Inc. agreed to a $35 million buyout offer from Scitex Corp. of Israel, the companies said Wednesday.
Leaf Systems, a privately held company with about 100 employees, produces computer equipment used to electronically transmit and receive photographs. Leaf equipment is used by Associated Press bureaus and member newspapers worldwide.
Scitex, based in Herzlia, Israel, manufactures color electronic scanners used by large printshops and publishers, as well as layout and design systems. It has annual sales of about $430 million.
Robert A. Caspe, president of Leaf Systems, said the agreement would give Leaf access to Scitex's worldwide distribution network. Leaf will continue to operate as an independent company and will serve its major customers, he said.
On top of the $35 million payment, Scitex agreed to make unspecified payments through 1994 to Leaf depending on the performance of the company.
''We are excited by this agreement to join Scitex, the company which pioneered and continues to lead the color prepress market,'' Caspe said in a statement.
Arie Rosenfeld, president of Scitex, said Leaf systems' technology ''complements the Scitex commitment to serve all major prepress markets from design and creation through color separation to final print.''
The deal is subject to a final agreement and regulatory approval, said Harold Evans, senior vice president of sales and marketing for Leaf Systems.
Scitex spokesman Avi Kartin said the agreement was approved Wednesday by Scitex's board of directors.
International Paper Corp. last month announced it planned to buy an 11 percent stake in Scitex. IP said it would invest $209 million in exchange for 4.75 million newly issued shares in Scitex.