Subsequent Events

9 Months Ended

Sep. 30, 2017

Subsequent Events [Abstract]

Subsequent Events

15. Subsequent Events

Acquisition of Escada

On October 1, 2017, we acquired privately held Escada Innovations Limited, a private limited company incorporated in England and Wales which is headquartered in Hull, East Yorkshire, United Kingdom, and Escada Systems, Inc., a Delaware corporation headquartered in Decatur, Georgia (collectively, “Escada”), for approximately $11.3 million in cash consideration, plus a potential future cash earnout of $4.8 million contingent on achieving certain performance targets. This acquisition will be accounted for as a purchase business combination and, accordingly, the total purchase price will be allocated to the tangible and intangible assets acquired and liabilities assumed based on their respective fair values on October 1, 2017.

Escada provides corrugator control systems for the corrugated packaging market, which provides comprehensive control and traceability for the entire corrugation process. Escada will be integrated into the Productivity Software operating segment.

Xeikon Agreement

On November 1, 2017 (“Effective Date”), we entered into a Support Services and License Agreement (“Agreement”) with Xeikon, N.V. (“Xeikon”), which is a division of the Flint Group headquartered in Luxembourg. Pursuant to the Agreement, we will provide Xeikon access to the Jetrion customer list. Access to the customer list will enable Xeikon to assume the relationship with the third-party outsourcing company that manufactures Jetrion printers for us and resell the printers to our current customer base. Xeikon will purchase Jetrion ink exclusively from us and resell to both our current customer base as well as new Xeikon inkjet customers. Also, we will cease sales of Jetrion products for four years after the Effective Date. We will receive cash consideration of $2 million in the first year followed by three annual volume-based payments that are tied to Xeikon’s ink purchases from us.