The online retailing giant Amazon committed to spending $400 million with digital printer maker Kornit over the next five years, in exchange for stock warrants. Amazon has a long-standing partnership with Kornit to power its Merch by Amazon services.
“The business is on fire – fashion companies are moving online and to textile printing on demand,” said Kornit CEO Ronen Samuel while speaking on the development to the Israeli newspaper Haaretz. “The agreement marks a turning point for us – we will be a huge company. Our sales target of $500 million in 2023 will be achieved only through organic growth.’
Amazon committed to buying products and services from Kornit totaling $400 million over the next five years. The commitment is divided into two – $250 million in existing products (digital printers, inks and services) in exchange for warrants convertible into 1.9 million shares, and $150 million in future products in exchange for warrants for 1.5 million shares.
Amazon has been using Kornit printers for its Merch by Amazon service for several years. The service lets independent designers sell personalized T-shirts and other items, with Amazon handling production, shipping and collection. This new deal with Kornit will allow Amazon to expand its digitally printed offerings to things like housewares and sports equipment. Amazon will use Kornit’s Presto, an industrial single-step direct-to-fabric printer.
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