MGI's Technology Will Expand Konica Minolta's Reach in Print Markets

G00262128

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Summary

The strategic alliance between Konica Minolta and MGI Digital Graphic Technology will use their complementary strengths to help both expand their digital printing businesses.

News Analysis

Event

On 20 January 2014, Konica Minolta and MGI Digital Graphic Technology announced an agreement to co-develop and co-market current and future products. As part of this agreement, Konica Minolta will acquire a 10% stake in MGI, valued at €13.7 million ($18.7 million), through a reserved capital increase. MGI will continue to be run independently.

Analysis

The alliance potentially gives Konica Minolta access to MGI’s Meteor, Alphajet and JetVarnish products — which complement Konica Minolta's bizhub Press C8000e and KM1 products — and to MGI's Ceradrop circuit-printing technology. In addition, it will enable Konica Minolta to expand its production printing business by exploiting MGI’s marketing expertise and innovative capacity.

Since 2011, Konica Minolta has been making acquisitions and alliances across the globe to tap into key strategic growth areas in solutions, products and services. MGI's and Konica Minolta's assets and strengths complement each other, and will help them work together to promote market development. MGI has attained rapid growth within the digital printing market by using its inkjet technology to meet increased demand for integrated circuit chip cards, plastic printing, printed electronics and, perhaps more interestingly, the printing of 3D components. This alliance will help develop MGI's global business and improve its market awareness through the power of the Konica Minolta brand.

The production print market is in a state of flux. The Konica Minolta-MGI deal also represents the continued consolidation among providers of production print technology. An earlier example was Xerox's acquisition of the industrial inkjet manufacturer Impika in February 2013 (see "Xerox Acquires Impika to Bolster Its Color Production Printing Offerings" ).

Gartner believes that the personalization trend and the growing demand for printing on a variety of substrates will create new market opportunities in an otherwise ailing print market. To meet these demands, printer providers in the commercial printing space require technology that can print on different kinds of media and in different dimensions.

Recommendations

Current and prospective Konica Minolta and MGI customers:

  • Evaluate Konica Minolta's and MGI's complementary inkjet technology for printing on a wide range of substrates.

  • In the long term, monitor jointly developed technology from Konica Minolta and MGI.

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