New strategic alliance: Konica Minolta and MGI Digital Graphic Technology focus on the development of tomorrow’s innovative digital solutions
Konica Minolta, Inc. (Konica Minolta) and MGI Digital Graphic Technology (MGI) reached an agreement where Konica Minolta will acquire a 10 percent stake in MGI. This investment will be dedicated to drive future growth, the companies said in an announcement, and is part of a common long term vision to establish a stronger presence in the professional digital printing market.
Building on a strong relationship that has lasted over a decade, the two business partners agreed to expand their collaboration. This strategic alliance leverages both co-development and the co-marketing of existing and future products, noted the organizations.
Creating new and mutually rewarding opportunities, Konica Minolta and MGI will build upon each other's strong history, proven track record of innovation and customer service to create a strong joint effort enabling long term successes.
InfoTrends’ Arianna Valentini and Ron Gilboa blogged: “Konica Minolta’s investment is a decisive step forward given the long-standing relationship between the two companies, under which MGI has utilized a variety of Konica Minolta technologies in its own machines. For the past 10 years, the collaboration between the two companies has been the basis for the imaging components of MGI’s products. This investment further strengthens the strategic alignment between the companies, and the knowledge sharing will surely accelerate in the future. This announcement is also important in light of MGI Group’s latest strategic acquisitions and product announcements.”
According to Konica Minolta and MGI, this agreement will allow for:
- MGI to grow to greater heights as a global player, as it gains additional exposure supported by the strong reputation and positioning of Konica Minolta worldwide;
- Konica Minolta to capitalize on MGI's expertise in the digital printing market and its capacity to innovate;
- Both companies to devote their best efforts to expand sales of existing and new products, including, but not limited to, the Meteor Digital Press line;
As part of this alliance, MGI will maintain its independence and will remain autonomous in defining its strategic axes in the midst of a rapidly evolving industry landscape.
Edmond Abergel, CEO and chairman of MGI, said, “We are very happy and proud that Konica Minolta recognizes our accomplishments and our unique capacity to innovate. This strategic alliance will be the basis for the development of tomorrow's innovative digital solutions.”
Konica Minolta, will promote the “genre-top strategy” (a strategy to concentrate the management resources on the most promising business areas and markets to ensure global leadership in these fields) in these growing markets, especially in the field of production printing systems. Through this strategic alliance, Konica Minolta aims to achieve group-wide growth and maximize its corporate value.
According to Valentini and Gilboa, InfoTrends believes that that this announcement is representative of two key trends in our industry. “First, ongoing investments by core technology vendors like Konica Minolta are enabling smaller companies to integrate their technologies into solutions with compelling value propositions (as is the case with the JETvarnish 3D),” they said. “Second, it also signifies the development of digital printing solutions that are targeted toward functional and industrial printing.”