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X-Rite buys Pantone
By Ania Dardas
In a very unexpected move, X-Rite, located in Grand Rapids, Michigan, announced its intention to acquire Pantone, inc, New Jersey for $180 million in Fall 2007. Pantone is known to everyone in the world of design and printing, best of all for its Pantone Matching System, the ubiquitous color swatch whose numbering system allows precise color values to be defined for printing processes. X-Rite, which has a formidable range of pre-press color services and is, arguably, global leader in the color management industry, is probably best known for its color measurement and matching products.
As a ‘household’ name in the field of graphics and color, the Pantone brand can only further enhance X-Rite’s business. A number of clear advantages for X-Rite are associated with this acquisition:
- X-Rite already holds a leadership position in hardware, software and service solutions and with its color standards, Pantone will broaden X-Rite’s range of services
- As a healthy company with a turnover of $42 million for 2006, the acquisition of Pantone will diversify X-Rite’s revenue base
In return, Pantone will be able to leverage X-Rite’s global presence and distribution to expand the reach of its color solutions. Pantone is intended to become a new business unit within X-Rite and current leaders will remain. A strategic partnership between Pantone and X-Rite in the field of digital imaging over the past two years means that the companies are already known to each other. “Pantone is a perfect complement to X-Rite. X-Rite’s strengths in technology, innovation and its global presence will help Pantone develop and innovate faster and better.” Will Holland, vice president of corporate marketing at X-Rite
As a veteran of numerous acquisitions, X-Rite has considerable experience of integrations and the problems that can beset them when two differing corporate cultures meet. According to Larry Herbert, Chief Executive Officer of Pantone since 1962 when he acquired the company, “Our company is wholly committed to color communication and inspiration and we are enthusiastic about combining our growing business with X-Rite to apply even greater resources to this work.”
