HP Acquires Exstream To Expand Print 2.0 BusinessHP Acquires Exstream To Expand Print 2.0 Business

The company's variable data publishing could allow a retailer to create promotions tailored for a particular customer segment, based on its purchase history.

Antone Gonsalves, Contributor

January 22, 2008

2 Min Read
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Hewlett-Packard on Tuesday said it has agreed to acquire Exstream Software, a privately-held company that makes enterprise-level applications that manage the printing of documents and marketing materials for specific audiences. Financial terms were not disclosed.

Exstream, based in Lexington, Ky., provides HP with products that can expand the company's reach in enterprise printing.

"We expect that the acquisition of Exstream will allow HP to address a broader set of customers and be a strong leader in the fast-growing document automation market," David Murphy, a senior VP in HP's Imaging and Printing Group, said in a statement.

Exstream products fall under a category known as "variable data publishing." The system of software, printers and network infrastructure enables companies to design and produce documents or publications customized for a particular audience.

As examples, HP lists a retailer creating promotions tailored for a particular customer segment, based on its purchase history. Another example would be a financial institution creating reports on investment performance geared toward customers of specific services.

Exstream, which was owned by American Capital Strategies, has more than 400 customers in a variety of industries, including banking and financial services, government, insurance, retail, telecommunications, transportation, travel, hospitality and utilities. The 10-year-old company has more than 300 employees.

Its products include a suite of document-automation software, and a suite of tools for managing print streams. HP plans to fold Exstream into the Web services and software business unit within the Imaging and Printing Group. The acquisition is expected to close in HP's second fiscal quarter, which runs from February to April.

Along with enterprise printing, HP is heavily focused on what it calls its Print 2.0 initiative. The strategy leverages Web-based services, such as HP's SnapFish photo-sharing service, in trying to capture a significant share of the growing number of digital pages printed each year. According to HP, 53 trillion digital pages are forecast to be printed in 2010, creating a market valued at more than $296 billion.

In November, HP said it would stop making its own line of digital cameras in order to shift more resources toward its printing business.

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