The Japanese company hopes to acquire Domino Printing Sciences for $1.55 billion (€1.46 billion).
The New York Times reported on the ongoing acquisition, which will see Brother expand its work in industrial printing through the Cambridge-based company, which produces and sells industrial inkjet, laser and barcode printers.
Brother called the acquisition a “strategic fit” for its future industrial offerings, with Domino’s board of directors intending to “unanimously recommend that shareholders accept the offer”. The board also owns around 0.4 percent of Domino and would be tendering their own shares, with Brother set to pay around £9.15 ($13.52/€12.79) per share – a 27 percent premium to its current valuation. The acquisition is subject to both shareholder approval and “other conditions”.
Domino posted revenue of £350.2 million ($517.6 million/€489.6 million) in 2014, and currently employs 2,300 people in Cambridge, with Chairman Peter Byrom commenting that it has faced increased competition from companies with “greater scale and financial firepower”.
He added that “Domino is a unique company with a strong track record […] it has become increasingly clear that maintaining its position in the enlarged markets will require Domino to find the appropriate partner that brings complementary skills and strengths in digital printing”. Brother President Toshikazu Koike also commented that “the combination of Brother and Domino will represent a unique value proposition in industrial printing, with significant growth potential”.