Amazon, Kornit Reach Stock Deal
Plus, web giant purchases textile printers for its ‘Merch’ program.
Amazon has reached a multifaceted agreement with Kornit Digital to acquire nearly three million of the company’s common shares in addition to purchasing what was quoted in a press release as a “large number” of textile printers. Through the agreement, Kornit will deliver its Avalanche 1000 printer as Amazon seeks to expand its production capacity for the Merch program, designed to help its content creator members to produce T-shirts.
The program reflects a movement toward online retail that is rapidly gaining speed. Internet Retailer magazine reports that 2015 US online apparel sales reached $80 billion – a 20 percent growth over the previous year. In the same year, online sales represented 17 percent of the total apparel market.
Amazon will accrue the stock shares at just over $13 per share over the next five years, according to the release.
For more, read Mark Coudray’s take on how capitalist interest could affect garment decorators.