Electronics For Imaging, Inc. (EFII), Nice Systems Ltd (ADR) (NICE): How You Can Benefit From Computer Peripheral Makers

Page 2 of 2

The company became a leader in 3D printing after it merged its operation with Israel based company, Objet, in December 2012. This deal was an all-stock deal, where the Objet identity ceases to exist. This deal will result in Stratasys, Ltd. (NASDAQ:SSYS)’ shareholders holding 55% of shares and Objet’s shareholders holding the remaining 45% of shares. Currently the combined entity has market share of 57% in the 3D market. This merger will increase the distribution reach of the combined entity, and sales will benefit from more than 260 resellers and agents around the world. In addition, it is expecting cost synergies of $8 million annually, starting by 2014, due to reduction from shared expenses, better allocation of resources, and reduction in future recruitment costs.

Conclusion:

All three have implemented various strategies to sustain the growth in computer peripheral industry. Segmental revenue of Electronic For Imaging’s Fiery Controller is expected to grow due to new clients’ product launches.

Nice Systems Ltd (ADR) (NASDAQ:NICE)’ possible merger will make it a market leader in the voice recording segment, and Stratasys, Ltd. (NASDAQ:SSYS) will gain both revenue and cost synergies from the acquisition of Makerbot and merger with Objet.

Thus, looking at the performance of the companies, I recommend a buy for all three stocks.

Shweta Dubey has no position in any stocks mentioned. The Motley Fool recommends Stratasys. The Motley Fool owns shares of Stratasys.

The article How You Can Benefit From Computer Peripheral Makers originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2