In a game-changing deal, Seiko Epson Corporation (“Epson”) is set to acquire Fiery, the leading provider of digital front-end (DFE) servers and workflow solutions, from Siris Capital Group for a hefty $591 million. Epson to acquire Fiery is expected to accelerate digital printing growth globally while adding another key player to Epson’s already impressive print industry solutions. The deal is under regulatory review but is expected to close by the end of 2024.
Epson To Acquire Fiery: What It Mean For The Industry?
Fiery, a U.S.-based company with a customer base spanning over 2 million DFEs sold globally, has long been known for empowering printers with high-performance color and print quality. Its software and cloud-based solutions are pivotal to the commercial print, industrial packaging, textiles, and display graphics sectors. By bringing Fiery into the fold, Epson plans to harness these powerful technologies to complement its hardware expertise and drive even more innovation in digital printing.
Yasunori Ogawa, President and Representative Director of Epson, shared his excitement:
“We are delighted to welcome Fiery into the Epson Group. We are confident that this agreement will not only drive further growth in our commercial and industrial printing businesses but also accelerate the digital transformation of the analog printing market in an innovative way.”
Epson to acquire Fiery, marking a significant move to strengthen its position as a leader in the print industry and advance its strategic goal of revolutionizing digital printing. With the industry in need of fresh innovation, this acquisition could be the perfect catalyst for change.
Why Fiery?
Founded over 30 years ago, Fiery has earned a reputation as a pioneer in digital front-end solutions, offering the software and hardware support that printers need to stay competitive. But what sets Fiery apart is its unique ability to work with a broad range of OEM partners.
As Toby Weiss, CEO of Fiery, put it, “Epson’s acquisition of Fiery showcases the uniquely important role we play in enabling success across the entire print industry. Fiery has built a long legacy of empowering OEMs to deliver the best possible results for their customers, and that legacy will be enriched under Epson’s strategic vision.”
The deal between the two feels like a natural fit, with Epson to acquire Fiery as part of its strategy to expand into areas where it previously lacked expertise, such as production software and workflow solutions. On the flip side, Fiery benefits from joining forces with a global technology leader renowned for its innovation in printheads, inks, and more.
What’s Next For Fiery And Epson?
Post-acquisition, Fiery will maintain its current name, organizational structure, and offices. That’s right—Fiery won’t be absorbed into Epson but will instead operate as an independent business unit, which could be the perfect setup for growth. Fiery’s integration into Epson’s corporate structure also brings about some interesting questions. Will Epson let Fiery run the show when it comes to front-end solutions, or will they slowly bring them into the Epson way of doing things? Time will tell.
Both Epson and Fiery have expressed that industrial inkjet printing is the next frontier for growth. This move aligns with Epson’s continued focus on leveraging its leadership in hardware technology while tapping into Fiery’s expertise in digital workflow solutions.
“Together with Fiery, we remain committed to contributing to our customers’ success and enhancing corporate value,” Ogawa added.
A Strategic Leap Or A Gamble?
Let’s not sugarcoat it—acquisitions like this one can either be a stroke of genius or a gamble. Epson’s $591 million price tag for Fiery raised some eyebrows. As reported, Fiery’s revenues before being split off from EFI averaged $280 million annually. While the price-to-revenue multiple seems reasonable, the bigger question is whether Fiery can continue to grow in a shrinking copier/MFP sector that has fueled much of its success. Additionally, Fiery’s competitors, like Global Graphics and Esko, aren’t standing still, and Epson will have to work hard to maintain Fiery’s industry leadership.
At the same time, Epson has a track record of careful expansions, and the company’s cautious approach could work in its favor. Epson has excelled in managing partnerships with other OEMs, and this acquisition is likely part of a broader strategy to expand into the industrial inkjet space. The integration of Fiery’s front-end workflow technology with Epson’s renowned printheads and inks might just be the synergy the print industry needs.
The Takeaway: Epson To Acquire Fiery
In the ever-evolving world of print technology, Epson’s acquisition of Fiery is a bold and strategic move. While challenges lie ahead, both companies are positioned to leverage their strengths and push the boundaries of digital printing. With Fiery’s expertise in DFEs and workflow solutions and Epson’s hardware innovation, this deal could set the stage for a new era in the print industry—one where digital solutions finally take center stage.
As the deal awaits regulatory approval, the print world will be watching closely. And with any luck, this partnership will spark a wave of innovation that benefits customers across industries, from commercial print to textiles and packaging. Stay tuned for what’s to come in this exciting new chapter for Epson and Fiery.
