HP Indigo, U.S. Tech Giant's Israeli Digital Printing Unit, Signs Giant Deal With Shutterfly

Contract with online retailer and manufacturer of personalized products and services could be worth $650 million over next five years

An employee at the HP Indigo headquarters in Nes Tziona, Israel.

HP Indigo, the Israeli digital printing unit of the U.S. technology giant, said Friday it had won an expanded order that could be worth $650 million over the next five years from Shutterfly, an online retailer and manufacturer of personalized products and services.

Under the deal, Shutterfly will be increasing the number of HP Indigo 12000 Digital Presses it is buying by 20, up to a total of 45, for delivery over the next year. It also designated HP Indigo as its preferred digital press provider.

The printers themselves are priced at between $1 million and $1.5 million each, but the main revenues come from supplying the consumables and services they require.

The deal is by far the biggest yet for HP Indigo, which counts some 500 printing machines in use in 50 countries around the world, including at companies such as the Coca-Cola Company, Mondelez International/Oreo and Nestle.

Shutterfly will use its new fleet of digital presses to produce a range of personalized products and gifts, including photo books, calendars, custom stationery, cards and keepsakes.

Indigo was founded by the Israeli tech entrepreneur Benny Landa and sold to what was then Hewlett-Packard in 2001. The company employs 3,500 people, 2,500 of them in Israel in Kiryat Gat and at its Nes Tziona headquarters.