Business News
Printronix Seeks to Acquire U.S.-Based Assets of TallyGenicom
Wednesday 28. January 2009 - Printronix Asks to Serve as "Lead Bidder" in Court-Supervised Auction of TallyGenicom, Which Filed for Chapter 11 Bankruptcy Protection Today
Printronix Inc., a leading integrated supply-chain printing solutions manufacturer, announced today that it is seeking approval from the U.S. Bankruptcy Court for the District of Delaware to be named as the lead bidder in the auction of assets of TallyGenicom LP. The request comes in conjunction with TallyGenicom’s filing of a voluntary petition for protection under Chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. TallyGenicom is a global provider of printing solutions. Printronix seeks to acquire the intellectual property, inventory and equipment to integrate the TallyGenicom line-matrix and serial-matrix printer series into its own portfolio.
“TallyGenicom has been a leading global provider of quality printing solutions,” said Robert A. Kleist, chief executive officer, Printronix. “There is a great synergy between our respective line-matrix printer businesses. By combining the TallyGenicom product line with ours, we will be able to increase the breadth and scope of Printronix’s business from both geographic and industry perspectives, should our bid be successful. Consistent with Printronix’s heritage of providing outstanding customer service, we will be dedicated to the global community of TallyGenicom users and provide continued support of installed TallyGenicom products.”
If approved, Printronix’s acquisition of the TallyGenicom printer assets will be another milestone in a series of strategic decisions made in the year since Vector Capital completed its acquisition of Printronix in January 2008.
“Vector Capital has a long track record of successfully investing through demanding economic cycles and building lasting value among its portfolio companies,” said Amish Mehta, partner, Vector Capital. “Since taking Printronix private last year, Vector has helped the company significantly expand its global operations, increase its distribution channels and strengthen its management team. If approved, the TallyGenicom acquisition will increase Printronix’s global scale and enhance the company’s ability to service its worldwide customer base.”
The sale of U.S. assets of TallyGenicom pursuant to Chapter 11 is expected to take approximately 45 days. During this time, a Printronix transition team will work with TallyGenicom to facilitate the transition, should the deal be approved. Printronix anticipates that some TallyGenicom employees could join Printronix, but will make final staffing decisions upon completion of the transaction.