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Xaar plc

Acquisition of FFEI

Deal to strengthen Xaar's capabilities and support growth strategy

Xaar plc ("Xaar"), the leading inkjet printing technology group, is pleased to announce it has completed the acquisition of FFEI Limited ("FFEI"), a leading integrator and manufacturer of industrial digital inkjet systems and digital life science technology based in Hemel Hempstead, UK (the "Acquisition").

The addition of FFEI strengthens Xaar's capabilities and skills and will help to provide a more comprehensive solution for its growing number of OEM and UDI (User Developer Integrator) customers. The deal will accelerate Xaar's existing growth strategy and will enable Xaar to capture additional opportunities in vertically integrated solutions. This additional capability will enable our customers to reduce their development timescales and shorten their time to market.

FFEI has a strong reputation in the industry for being highly innovative and for advanced imaging solutions. The core specialisms are in print systems and printbar manufacturing, which have enabled FFEI to establish several joint development projects with world leading organisations in both digital inkjet and life sciences.

In the year to 31 March 2021 FFEI generated revenue of £9.9 million with an operating margin of 9%. FFEI employs in excess of 60 people who will remain with the business. The initial cash consideration of £3.7 million was paid on completion, which reflects existing FFEI free cash reserves, with an additional £5.4 million deferred consideration to be paid out over three years.

Whilst the Board expects the Acquisition to be slightly earnings accretive in the first full year of ownership, the acquired expertise and resource will also be utilised for projects that will drive long term profitable growth in Xaar's core printhead business.

John Mills, CEO of Xaar, commented "Having restructured and stabilised our core printhead business, the acquisition of FFEI will accelerate our strategy and expand our customer offering in a range of markets. As well as providing a number of ready-made solutions, the acquisition will further enhance Xaar's world class expertise.

"I've personally known the FFEI team for many years and have long admired their capabilities having previously worked closely with them. We are very excited to welcome them to Xaar and look forward to integrating the business as we continue to deliver on our strategy."

Andy Cook, CEO of FFEI, commented "We are delighted to become part of Xaar which represents a fantastic opportunity for the business to develop and grow. Xaar has been a long-term market leader with great technology and great people and is a perfect fit for the business."

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