Kornit Digital Signs Agreement with Amazon
January 11 2017 - 6:45AM
Kornit Digital (NASDAQ:KRNT), a worldwide market leader in digital
textile printing technology, announced today that following
previous purchases by Amazon, it has been selected to deliver a
large number of on-demand textile production systems to Amazon in
support of the company’s Merch by Amazon program.
U.S. online apparel sales in 2015 amounted to
$90 billion, according to the Internet Retailer publication,
representing 20% year over year growth. As the apparel market
transitions to short cycle on demand customized garments, Kornit is
focused on providing a fully personalized garment decoration
solution with ultra-fast turnaround times.
“We are excited to have been selected as a
garment printing solution provider for Amazon, and look forward to
the business potential this relationship represents,” said Gabi
Seligsohn, CEO of Kornit. “Kornit Digital is at the forefront of
the digital direct-to-garment market, and we believe that Amazon’s
decision is great testament to that. We are deeply committed to the
success of our business with Amazon and reiterate our commitment to
all of our customers to stay at the forefront of the DTG market and
continue to provide them with the most advanced, cost effective
production solutions.”
Through this agreement, Kornit will deliver the
company’s flagship high-productivity system, the Avalanche 1000, to
support Amazon’s expansion of production capacity for the company’s
Merch by Amazon service. A self-service program for developers,
Merch by Amazon is the simple way for content creators to increase
revenue through the sale of t-shirts.
“Customer demand for graphic t-shirts offered
through Merch by Amazon continues to grow rapidly, and more
developers and content creators join the service every day,” said
Miguel Roque, Director, Merch by Amazon. “Kornit’s ability to
deliver solutions and support that meet our high quality and high
volume manufacturing requirements will help us to continue
expanding program capacity to meet customer requests.”
In conjunction with the commercial agreements,
Kornit Digital has agreed to grant Amazon warrants to acquire over
a five-year period up to 2,932,176 of Kornit Digital’s common
shares at $13.03 per share, based on the volume weighted average
closing prices of Kornit Digital common shares for the thirty
trading days prior to January 10, 2017. Vesting is tied to payments
made by Amazon in connection with the purchase of goods and
services from Kornit Digital, the extent of which is more broadly
described in a report on Form 6-K filed by Kornit with the SEC
earlier today.
About Kornit Digital
Kornit Digital (NASDAQ:KRNT) develops,
manufactures and markets industrial digital printing technologies
for the garment, apparel and textile industries. Kornit delivers
complete solutions, including digital printing systems, inks,
consumables, software and after-sales support. Leading the digital
direct-to-garment printing market with its exclusive eco-friendly
NeoPigment printing process, Kornit caters directly to the changing
needs of the textile printing value chain. Kornit’s technology
enables innovative business models based on web-to-print, on-demand
and mass customization concepts. With its immense experience in the
direct-to-garment market, Kornit also offers a revolutionary
approach to the roll-to-roll textile printing industry: Digitally
printing with a single ink set onto multiple types of fabric with
no additional finishing processes. Founded in 2003, Kornit Digital
is a global company, headquartered in Israel with offices in the
USA, Europe and Asia Pacific, and serves customers in more than 100
countries worldwide. For more information, visit Kornit Digital at
www.kornit.com.
Investor contact:
Michael Callahan, ICR
(203) 682-8311
Michael.Callahan@icrinc.com
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