The Canadian information technology and imaging firm Creo Products (Nasdaq:CREO, TSE:CRE) on Monday announced intentions to consolidate all its businesses and activities under a single brand and logo: Creo.
The change, effective from January 2002, will apply to the CreoScitex unit, which loses its association by name to the Israeli digital print company, Scitex (Nasdaq:SCIX), which retains its 27% stake in Creo.
CreoScitex, operating as a unit within Creo, employs 4,000 people.
In the second and third quarters Scitex wrote off $185 million partly due to the eroded value of its investments in Creo. In the third quarter Creo also took a hammering, writing off $354.8 million ¿ in its case, due to eroding book value of goodwill, doubtful debts, and investments.
"CreoScitex is a confusing name," explained CreoScitex President Michael Rolant. When Scitex and Creo merged, they kept their joint name on the grounds that both offered added value, he said. But problems have arisen, partly because neither fully controls investment in their joint brand. A famous example is the "penguin project", in which CreoScitex scattered giant model penguins around Tel Aviv as a PR stunt. (See link below.)
There were even cases of CreoScitex exhibiting right next to Scitex, Rolant said, which created confusion.
CreoScitex builds tools, systems and processes to simplify the pre-print stages. Scitex is a holding company for firms engaged in bringing digital imaging technologies to Internet for the purpose of business communications. Its core activities are digital printing (primarily inkjet technologies), digital preprint (through its holdings in Creo) and Internet imagery.