Electronics For Imaging, Inc. (EFI) is advancing its technology footprint.
The global technology company announced that it acquired Israeli 3-D design software company, Optitex Ltd. and is adding it to EFI’s Productivity Software business unit. The takeover will further the textile industry’s digital transformation and advance the fast-fashion concept.
EFI chose Optitex because its 3-D technology is a disruptive force in the textile industry. As the 3-D textile design tools market leader, Optitex focused solely on software, expanded into large global brands and is now working on future developments, including digital collections and a digital dressing room.
Optitex’s advancements also align with EFI’s strategic plan, which includes expanding its textile ecosystem, gaining access to major brands, increasing synergies and leading textile industry technology.
“Optitex technology, combined with EFI Reggiani digital printers, will expand our textile ecosystem and help our customers set new standards for time-to-market, on-demand manufacturing, cost efficiency and automation in the textile industry,” EFI Productivity Software’s senior vice president and general manager, Gabriel Matsliach, said.
3-D technology has numerous benefits for the textile industry, including supply chain optimization, faster validation, advanced marketing and online dressing rooms. Seventy-five percent of samples can be virtualized with 3-D technology, dramatically reducing the $6 billion to $9 billion that brands spend each year on supply chain optimization.
The product development cycle is reduced up to 70 percent by using 3-D technology, validating lines faster and cutting development costs. Brands that use 3-D technology will also be able to create market designs with online platforms that let them share collections with buyers more efficiently. Lastly, 3-D technology would increase online clothing sales, assist with consumer sizing and decrease the 65 percent return rate. Companies such as EFI will be able to utilize 3-D technology and greatly advance the textile industry in the next decade.
Optitex CEO Asaf Landau spoke about how EFI’s acquisition will benefit both companies and other textile industry influencers. “EFI’s global presence, holistic solution approach, strong professional services abilities, and growing portfolio of innovative textile industry-specific products will be of great benefit to the leading companies we serve worldwide in the fashion, automotive, aerospace and technical textiles industries. I am truly enthusiastic about what is to come for these industries in the years ahead,” he said.
The purchase price of the acquisition was a $20 million upfront cash payment with $3 million of upfront cash placed into escrow. Up to $32.8 million is expected for earn out over the next three years depending on revenue growth. Although this financial gain will not impact the second quarter of 2016, it is expected to contribute between $4 million to $6 million in revenue for the remainder of the year.