Following its acquisition of 3-D technology firm Ray Dream, Aptos, California-based Fractal Design Corp, plans to grow out of its one-product niche by launching more graphics kit, bumping up its presence in Europe, and establishing an office in Japan. Fractal, which bought Ray Dream for 3,250,000 shares or about $52m, is best known for its professional graphics product, Painter, but plans to launch new products incorporating Ray Dream’s 3-D technology this summer. The two companies combined annual revenues were $28m, which Fractal says it expects to increase by at least 66% – itsown growth last year – by next year. It says it now has the capability to launch a suite of graphics products, but no firm plans so far. In addition to almost doubling its staff to 110, the merger will let Fractal leverage Ray Dream’s reputation in the European market, where it has a Paris office. With the merger, the company now has too many distributors in Japan, including Media Vision and Letraset, and therefore plans to reduce its channel there this summer. Fractal will combine its strength in retail with Ray Dream’s direct marketing sales emphasis. Fractal’s products compete with Adobe Systems Inc, Macromedia Inc and Corel Corp. In the past, Fractal has focused on medium to high-end customers but may reposition some products for the consumer market in 1997. It says it wants to exploit the product area between 2-D and 3- D. It will release NT versions of its products within nine to 12 months.
