Cimpress Agrees to Acquire WIRmachenDRUCK

Cimpress N.V. has entered into a definitive agreement to acquire WIRmachenDRUCK GmbH, a German web-to-print company that serves small and medium businesses, graphic arts professionals and local printers via an e-commerce “upload and print” model.

This acquisition supports Cimpress’ strategy to build a mass customization platform (MCP) that it brings to market via focused brands and complements similar investments Cimpress has made in other European countries.

“We expect this acquisition to strengthen Cimpress’ mass customization platform and our ability to serve German customers,” said Robert Keane, president and CEO of Cimpress. “Their outsourced supply chain model allows them to be highly competitive across a vast selection of product types, formats, sizes, finishing options and delivery choices.”

WIRmachenDRUCK will continue to sell under its German brand via its website at www.wir-machen-druck.de.

Cimpress has invested over €300 million on the acquisition of upload and print companies, excluding this transaction. Collectively the previously acquired Cimpress brands in the Upload and Print Business Unit are growing at healthy double-digit year-over-year organic constant-currency growth rates; in the first quarter of fiscal 2016, revenue for this segment was $76.5 million (USD), and adjusted net operating profit was $10.9 million. Cimpress believes that its planned investment in WIRmachenDRUCK is consistent with those prior transactions in terms of strategic fit and financial valuation.

Under the terms of the agreement, Cimpress will acquire 100% of the shares of WIRmachenDRUCK for a purchase price of approximately €140 million net of any cash acquired, with a potential earn-out of up to €40 million payable in early 2018, subject to the achievement of financial performance targets for calendar years 2016 and 2017. Consideration at closing for the transaction will consist of €132 million in cash and €8 million in Cimpress shares.