Kornit Digital Buys SPSI Assets

Kornit Digital Ltd KRNT disclosed the acquisition of the digital direct to garment printing assets of a leading North American distributor and service provider for graphic arts, SPSI, Inc. The company believes the acquisition will be highly strategic as it will help enhance connectivity with customers by expanding its leadership position in the digital textile market and providing direct access to several traditional screen printing customers.

Kornit said that since 2004, both were partners with SPSI acting as a distributor of its printing solutions in most of the Western United States. Its network of marketing and logistic locations contributed the successful development of a wide range of customers, who use its solutions in the region.

Related Link: Kornit Digital Reports Q1 EPS $0.02 In Line, Sales $21.8M Vs $22.554M Est

The company indicated that the latest acquisition would not affect its collaboration with Hirsch, its other large distributor in the eastern half of the United States and California. The company added that both would continue to work together and strengthen the current partnership to fuel growth within Hirsch's sales region.,/p>

Kornit Digital CEO, Gabi Seligsohn, commented, "This acquisition will improve Kornit's time to market while increasing customer intimacy within the rapidly growing digital direct-to-garment printing industry. The acquisition also provides access to a large screen printing customer base which is poised to switch to digital technology over the next several years."

At time of writing, Kornit was up 1.23 percent on the day, trading at $9.88.