Kodak To Buy Heidelberg's Digital Business

"We will continue our R&D investment to extend the leadership position of the NexPress 2100 and expand our product offerings," adds James Langley, president of Commercial Printing for Kodak and its senior vice president.

As part of the deal, Heidelberg has agreed not to engage in competitive activities related to its digital division within the next two years. The companies will use a performance-based earn-out formula requiring Kodak to make periodic payments to Heidelberg over a two-year period, if specified sales goals are met. If those sales goals are met during the next two calendar years (ending Dec. 31, 2005), Kodak will pay a maximum of $150 million in cash. There will also be additional sales-related earn-out payments over a five-year period, if certain sales targets are achieved. Kodak will not pay any cash at closing for the business being acquired.