Business News
CeWe Color acquires web-to-print software specialist diron
Tuesday 18. November 2008 - Improved access to the market for web-based professional digital prints Leading print4media web2print solution and valuable know-how brought in diron's own market presence to be maintained
CeWe Color Holding AG (Prime Standard, ISIN: DE0005403901) has taken over one of the leading suppliers of software and consulting services around professional digital printing in the area of web-to-print solutions with the acquisition of diron GmbH & Co KG in Münster, Germany. The company, founded in 1991, develops software solutions for the automation of publishing workflows. In 1998 it launched the first web-based publishing system. Today the company’s core competence lies in coming up with web2print solutions and in marketing these solutions.
This involves developing and installing custom-made web applications on the basis of the software solution print4media. This enables companies to automate their marketing processing with online portals for their sales channels. The web2print software covers a wide range of print and service products, such as advertisements, company stationery, business cards, brochures, leaflets, catalogues and complex marketing campaigns. Operating more than 260 web2print shops at present, diron holds a leading position on this market in Germany.
The CeWe Color Group, as Europe’s largest photofinishing and digital printing enterprise, is considerably extending its service portfolio with this acquisition. After selling CEWE PHOTO BOOKS and other digital printing services to consumers through retailers, the company now also intends to market its web-based professional digital printing services to corporate customers. Dr. Michael Fries, Director for Germany with the CeWe Color Group: “The combination of diron as one of the leading suppliers of software programs and services on the web-to-print market and CeWe Color as the company with the largest capacity for first-class, four-colour digital prints will benefit both companies, but more than anything else, it will also benefit our customers.” The strengths of both companies are to be used effectively, one of the reasons why diron will continue to operate independently in the group. diron has profound project experience, particularly with major customers and exceptional sales know-how on the printing and advertising market. CeWe Color has also reached an agreement with the two Directors, Thomas Rödding and Stefan Nürenberg, that they will continue to develop the company in the long term. This also underlines the independent presence of diron, which is to be maintained and will pay off for both companies in the medium and long term.
With the help of diron, CeWe expects to achieve turnover amounting to approx. 3-4 million and, due to the expansion phase, anticipates that earnings will still be negative. In the period up to 2012, turnover is to reach more than 20 million and contribute towards group earning with an EBIT margin of 10 %. “diron is an ideal supplement to our presence on the market for first-quality digital prints. With the orders expected to come in from business customers addressed by diron, our digital printing line of business in particular will report additional orders received, with the number of orders rising steadily throughout the year. The acquisition will thus be considerably promoting the company in the digital printing segment, says Dr. Rolf Hollander, Chairman of the Board of Management of CeWe Color Holding AG.