Creo Products (NASDAQ:CREO) (TSE:CRE.) has invested $23.6 million in printCafe, as part of a $39.6 million private placement of equity and debt. printCafe is engaged in print management software for both printers and buyers in the printing and publishing industry.
Other investors in this fundraising round include Mellon Ventures, HarbourVest Partners of Boston, MA, J & W Seligman, and law firm Weiss, Peck & Greer.
The $23.6 million investment of secured long-term debt will increase Creo's voting interest in printCafe to approximately 40% from 17.24% and Creo's representation on the printCafe board of directors will increase to two seats from one. Amos Michelson, Creo CEO, will continue to serve as chair of the printCafe board of directors and one additional Creo representative will be named shortly. Creo will account for the investment in printCafe under the equity method.
Michelson said of cooperation between the two companies, "By integrating content production workflows from Creo with print management systems from printCafe, our customers will be able to take advantage of a web-enabled, fully integrated production environment."