Global Imaging Systems, Inc. acquired Marbaugh Reprographics Supply Company, Inc.  Marbaugh is a dealer focusing, in part of wide-format copiers and scanners. 

What The Acquisition Means

GIS has been executing a dealer intergration strategy for some time.  As a subsidiary of Xerox, they are looking to buy market share in the retail end of their market. 

This certainly isn't a novel strategy- we see it all the time.  In the graphics or signmaking industries, its not uncommon for a reseller to buy into their customer base in order to expand their service offering- especially on a local level close to distribution points.

What is really intersting here is how quickly GIS is rolling up the market- all fresh on the heals of their acquisition by xerox .

That said, we anticipate that this strategy will be more the exception than the norm.  Look for sign making acquisitions / graphics acquisitions to be either aimed at geographic expansion through purchasing a peer, or alternatively companies buying into their supply chain to claw back margin on key product lines.