This is Xerox’s first acquisition in Israel. "Globes" reported the impending deal in July.

Digital printer giant Xerox Corp. (NYSE:XRX) is making its first acquisition in Israel. As “Globes” first reported, Xerox today announced that it was acquiring Israeli start-up XMPie Inc. for $54 million. Xerox is buying the company after four years of collaboration.
XMPie has raised $15 million, mostly from Jerusalem Venture Partners (JVP), Scailex Corp. ltd. (Nasdaq: SCIX; TASE: SCIX) (formerly Scitex), and last year from Plenus Venture Lending Fund, a subsidiary of the Dovrat Group.

Based in New York, XMPie was founded in 2000 by former Scailex managers as a spin-off of the company. The co-founders were XMPie chairman and CTO Dr. Jacob Aizikowitz, VP print technology Israel Roth, and executive VP R&D Reuven J. Sherwin. The company’s solution is mainly designed for digital printing, which has received an immense boost in recent years thanks to developments in software. XMPie’s software is mostly relevant for marketing activity, making it possible to prepare documents with the addressee’s name embossed. The company cites a study by industry research firm InfoTrends, which predicts that the printed advertising market in the US will triple to $16.6 billion by 2009.

Xerox plans for XMPie to function as its first R&D center in Israel, focusing on digital printing. XMPie will operate as an independent unit, and Xerox has asked Aizikowitz to continue running the company, while CEO Eyal S. Goldwerger is about to leave. Xerox plans to greatly expand its workforce in Israel.

All in all, XMPie has been a successful company. Its 2006 sales were projected at $15 million, and it has been on the verge of profitability in recent quarters.

Thomas Weisel Partners, represented in Israel by Magnolia Capital(www.magnoliacap.com), acted as exclusive financial advisor to XMPie.