The combined company will have 4,000 employees, including 920 in Dayton, the company said.
Shares of Standard Register (NYSE: SR) rocketed at the news. The company’s shares closed at $13.80, up more than $10.80 or 360 percent.
Joseph Morgan, Standard Register, president and chief executive, said the acquisition will be immediately beneficial to the bottom line, will push the company to the $1-billion-in-annual-revenue mark, will expand its product line and double its customer base.
“It’s going to affect the value of Standard Register on so many levels,” Morgan said in a conference call with industry analysts.
“Congratulations on the deal,” an analyst told Morgan. “Certainly the best day we’ve had in a while.”
The company expects to achieve $40 million in annual savings when the integration with WorkflowOne is complete, it said. The company will begin to report as an integrated company starting next quarter.
Morgan will lead the combined company. Timothy Tatman, former president and CEO of Workflow One, will serve as an adviser through the integration, the company said.
“This strategic combination brings together two companies with highly complementary business and market presence to create a leading player in workflow, communications and analytics,” Morgan said in a statement. “The acquisition of WorkflowOne increases our customer base and incremental growth opportunities. It also provides new markets and capabilities.”
However, Standard Register faces challenges. For the second quarter, the company reported a net loss of $4.7 million, or 80 cents per diluted share, compared to a net loss of $1.1 million, or 19 cents per diluted share, for the same quarter in 2012.
For the first half, the company reported a net loss of $6.7 million, or $1.15 per diluted share, compared to a net loss of $6.2 million, or $1.07 for every diluted share.
Total revenue declined 11.8 percent to $136.8 million, compared to $155.1 million for the second quarter last year, the company said.
“Although we still face the volatility of a declining market for our traditional printing products, the investments we have made in technology-enabled solutions have created a portfolio with increasing relevance in the market,” Morgan said. “We are particularly enthused with the near-term and long-term value creation benefits of the acquisition announced (Thursday) morning.”
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