Applied Graphics Technologies, the $130m US outsourcer of digital image management and archiving for publishers and advertisers, has acquired MBA Graphics for $2.6m and, depending on earnings, $1.3m-$1.6m over three years. It aims to operate it as a specialist retail division. MBA, an 85-strong $5.5m imaging company targeting retailing and manufacturing, plans to open new plants in Schaumberg, Illinois later this month; in Dallas, Texas by the year-end; and in Seattle, Washington early 1998. Following the acquisition, the current management will stay in place and neither company anticipates redundancies. The Home Depot, a $19.5bn DIY retailer, accounts for the bulk of MBA’s revenues, and MBA says it anticipates significant turnover during 1998, expecting to benefit from new business growth at the Home Depot. David Aderhold, chief executive, president and joint founder of MBA, comments: The acquisition offers significant opportunities both for customers and employees … and AGT’s digital expertise will be of substantial value to customers. In particular, we will use AGT’s proprietary Digital Link System to establish a central repository for each customer’s advertising. Applied Graphics chairman and chief executive, Fred Drasner, says: The acquisition is an important step in our strategy to build AGT and expand our presence through selective acquisitions and internal growth.
