JVP making 250% on its $13 million investment

Guy Grimi
October 15, 2006  

In July TheMarker revealed that Xerox was negotiating to buy XMPie. Yesterday the two companies made it official: Xerox is buying the Israeli company for $54 million cash. Privately-held XMPie is Xerox's first acquisition in Israel.
XMPie's largest shareholder is Jerusalem Venture Partners (JVP, 60%). JVP will reap $33 million on its $13 million investment.

Thomas Weisel Partners represented in Israel by Magnolia Capital acted as exclusive financial advisers to XMPie. This is the second M&A transaction for an Israeli company completed by TWP in recent months, the first being the sale of Identify Software to BMC Software for $150 million last May.

The company was founded in 2000 by three former Scitex employees, Dr. Jacob Aizikowitz, Israel Roth and Reuven Sherwin. It seems that the three will each also make millions on the deal. XMPie has about 60 employees, and will keep the company's headquarters in New York and its research and development facility in Netanya. The vast majority of XMPie employees are expected to join Xerox.

The all-cash purchase is expected to close within 30 days, subject to regulatory approval and customary closing conditions.

XMPie makes variable information software, which enables cross-media, personalized marketing programs. The software allows graphic designers, marketing companies and print providers to create marketing pieces with an individual's name along with information and images based on buying preferences and personal interests.
The market for variable data printing that depends on software like XMPie to personalize applications is projected to triple in the United States at a compounded annual rate of 26 percent from $5.3 billion in 2004 to $16.6 billion in 2009, according to industry research firm InfoTrends.

"As XMPie's largest reseller, Xerox has long served customers' growing demand for variable information software integrated with on-demand printing technology, Web and e-mail applications to create powerful marketing programs," said Ursula M. Burns, president of Xerox Business Group Operations.
XMPie will maintain its brand name and function as a stand-alone software unit.