Eastman Kodak Co. said Friday it has decided to retain its Prosper inkjet business. The company had announced plans in March 2016 to sell it.
The decision was made following in-depth management review of business operations and multiple discussions with prospective buyers, Kodak said.
“This is a pragmatic decision given the improvements in the business and the offers received,” CEO Jeffrey Clarke said. “Prosper performed well in 2016 with a 40 percent increase in annuity sales for the full year. We expect our Enterprise Inkjet Systems Division to be profitable this year, including our next-generation Ultrastream investment.”
Kodak plans to continue to invest in its Ultrastream program and has entered into letters of intent with partners that will create new applications that drive market demand for the technology.
Kodak expects products built on the technology to go to market in 2019.
“The sale process for Prosper, which we conducted over the past year, was robust,” said David Bullwinkle, chief financial officer.
The company hired Sagent Advisors, which solicited interest from global organizations. Strong interest in the business and technology existed throughout the process, he said
“While we had multiple offers, the range of consideration did not reflect the value of the business today,” Bullwinkle said.
Kodak will recast financial results to reclassify Prosper into continuing operations of the company within the Enterprise Inkjet Systems Division. Kodak has been accounting for Prosper in discontinued operations as an asset available for sale.
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