Scitex is withdrawing from two high tech joint ventures, Karat and Vio.
Scitex is getting rid of 2 of its Joint Ventures
Karat Digital Press – selling shares to KBA
Scitex has reached an agreement in principle to conclude its joint venture with Koenig & Bauer AG (KBA).
The company said that since the Creo transaction and DRUPA, it had become clear that the best future for Karat lay in closer integration with KBA’s production and distribution activities. Under the terms of the agreement, Scitex will sell its share of Karat to KBA in return for future performance related payments.
KBA will be responsible for manufacturing, sales and customer support operations of Karat Digital Press machines worldwide.
Consummation of the transaction is subject to final agreements and necessary approvals by both parties.
Vio Worldwide Limited – management buyout
London based Vio is a partnership between Scitex and British Telecom. Its area of activity is the transfer of graphics files via Internet.
An agreement in principle has been signed for a management buyout of the business. Consummation of the transaction is subject to final agreements and necessary approvals by both parties.
Scitex will retain a right to obtain a future interest in the company.
All expected costs related to the conclusion of the Karat and Vio joint ventures are included in the 2000 financial statements as part of the share in losses of equity investments.
