Background

Headquartered in Cambridge, Xaar is a market leader in the development of inkjet technology used in a broad range of print applications, such as wide-format graphics, labels, ceramic tile decoration and in advanced manufacturing; it exports more than 85 per cent of its production to clients worldwide. The company had identified Kettering-based Megnajet Limited and Technomation Limited (trading together as Megnajet) as a potential acquisition, and engaged FRP to advise on the deal.

Action

FRP’s Corporate Finance team was appointed to provide buy-side advice to Xaar on the acquisition of Megnajet, which specialises in the design and manufacture of industrial ink delivery systems – including one of the most integrated and compact ink management and supply systems on the market. Our Corporate Finance team provided full buy-side advice on the deal, carrying out financial due diligence on Megnajet and advising on tax structuring.

Outcome

Xaar successfully acquired Megnajet in a £4 million deal that will accelerate the company’s growth strategy by enabling it to offer existing and new customers a more integrated inkjet solution. Megnajet’s products will form part of the end-to-end solution helping Xaar’s UDI (User Developer Integrator) customers reduce their development timescales and shorten their time to market, while attracting a broader range of commercial opportunities for Xaar.