Hewlett-Packard signed a definitive agreement to acquire Exstream Software earlier this week in a bid to improve its capability for one-to-one marketing.
“We’re still in the early stages of companies learning how to communicate more effectively with customers,” said David Murphy, SVP of HP’s Imaging and Printing Group, adding that HP wants “to expand this category very quickly.” The deal is expected to close in March.
Upon completion of the acquisition, Exstream will be integrated into the Web Services and Software business unit within the Imaging and Printing Group of HP. In fiscal year 2006, the Imaging and Printing Group accounted for 29% of HP’s overall revenue.
Exstream customers include American Express, Charles Schwab, Aflac, the US Department of Education, Con Edison and Carnival Cruise Lines. The company provides enterprise software products that streamline document creation and produce personalized communications of all types of delivery through print/mail and online channels. It is a portfolio company of American Capital Strategies Ltd. By combining its technology with HP’s printing market position and customer base, the goal is to be able to bring these solutions to more markets in a quicker time frame.
“We think there is a lot of rich media and rich publishing that can be delivered” through VDP that isn’t currently taking advantage of this technology, Murphy said.
