News

HP is hoping for a larger slice of the SME market after signing a deal to buy MacDermid ColorSpan for an undisclosed sum.

The inkjet manufacturer is a division of MacDermid Printing Solutions, but will be integrated into HP's Large Format section once the deal completes.

It will come under the direction of HP Large Format Printing Business vice president and general manager Enrique Lores.

Lores told printweek.com: "HP will use this acquisition to develop lower-cost platforms and UV technologies.

"These solutions will be added to a range of printers that includes aqueous thermal inkjet for indoor display, signage, fine art and technical CAD and GIS applications, low-solvent piezoelectric inkjet for outdoor signage, and high-end solvent and UV flatbed, sheet-to-sheet and roll-to-roll printing."

He said that while HP's Scitex lines are aimed at the high-end industrial segment of the print industry, HP will use ColorSpan to target "sign shop franchises, small independents and quick printers in retail print-for-pay environments".

Lores added that the new products will not duplicate any of its existing lines, and will carry the HP logo plus a sub-brand.

In the UK, ColorSpan products are distributed by Colourgen, although the implications for the supplier remain unclear. Managing director Jeff Biggs said of acquisition, "I wouldn't say I'm 100% surprised, but I'm 98% surprised."

He added that HP had declared it was not interested in the lower end of the market, while MacDermid ColorSpan has always been very quiet about its plans.

He described his relationship with HP as "very good" but hoped that HP would appreciate the unique nature of this market.

"HP is chasing what it thinks is a big pie and it wants a big slice of it. But you have to be specialised with these products."

HP said: "We don't expect the acquisition of MacDermid ColorSpan to have any impact on HP’s current relationship with its partners.

"In the short term, MacDermid ColorSpan, Inc. will continue to operate as a separate company and will continue to use their existing channel partners, although their channel partners will be gradually integrated into the HP Large Format Business channel structure after the close of the deal. Also a plan will be developed to define the access of the Large Format Printing distribution partners to the MacDermid ColorSpan portfolio after the close of the deal."