Kornit Digital acquires Custom Gateway, Expanding Cloud Software Workflow Portfolio for End-to-End Management of On-Demand Apparel and Home Décor Production

Acquisition marks important next step in expanding strategic partnership with leading brands, retailers, and suppliers as they accelerate digital transformation.

Kornit Digital (Nasdaq: KRNT), a worldwide market leader in digital textile printing technology, announced today the acquisition of Custom Gateway, an innovative technology provider of cloud-based software workflow solutions for on-demand production business models.

Kornit Printer

“I am very pleased to announce the acquisition of Custom Gateway as we augment our market-leading capabilities with their powerful software, which we’ve evaluated thoroughly, including via several strategic customers we share,” said Ronen Samuel, Kornit Digital CEO. “Brands, retailers, suppliers, and fulfillers of all sizes stand to grow considerably through digital transformation, and with Custom Gateway, Kornit will revolutionize on-demand digital textile production with a unique end-to-end solution, giving us a powerful competitive advantage in the market.”

Custom Gateway’s robust and functionality-rich cloud platform is suitable for both B2B and B2C business models and handles all steps of efficient on-demand production. The platform enables content sourcing, creation, content management, and display at the front end. Orders created are captured by a robust order management system and are directed to the appropriate back-end production sites using sophisticated routing algorithms. Once orders proceed to the production floor, they are smartly routed and managed, to allow for efficient on-demand production on a mass scale. The entire process from order creation to shipment is enriched with integrations to existing IT environments, data-driven decisioning, and business intelligence analytics. By seamlessly connecting front end (online or other storefront) to the most suitable back end (on-demand production and logistics operation), the technology enables customers to realize the full efficiency, scalability, and profitability benefits of digitization.

Supplementing Kornit’s Konnect platform for visibility and control of print operations, Custom Gateway’s platform offers Kornit customers valuable business insights for agility in the face of market dynamics and disruption.

Custom Gateway has over 300 active customers globally, including brand names such as the U.K.’s largest fashion retailer Next, as well as other leading sports, fashion, and content brands.

 “We’re excited about bringing these two creative cultures together and know from experience that Kornit and Custom Gateway are built upon a common vision,” said Andrew Talbot, Custom Gateway CEO. “Together, we will provide global brands and fulfillers optimal control of their business, ensuring swift, socially responsible fulfillment, and in a profitable model that produces and ships orders in real time, without excess inventory or labor.”

“On-demand production is overtaking traditional retail models, and the producers who harness all available data will win the marketplace,” said Omer Kulka, Kornit Digital CMO. “We’re excited to welcome Custom Gateway to the Kornit family, a development that will ultimately give end consumers the products and experiences they expect.”

Kornit Digital (NASDAQ:KRNT) develops, manufactures and markets industrial digital printing technologies for the garment, apparel and textile industries. Kornit delivers complete solutions, including digital printing systems, inks, consumables, software and after-sales support. Leading the digital direct-to-garment printing market with its exclusive eco-friendly NeoPigment printing process, Kornit caters directly to the changing needs of the textile printing value chain. Kornit’s technology enables innovative business models based on web-to-print, on-demand and mass customization concepts. With its immense experience in the direct-to-garment market, Kornit also offers a revolutionary approach to the roll-to-roll textile printing industry: Digitally printing with a single ink set onto multiple types of fabric with no additional finishing processes. Founded in 2003, Kornit Digital is a global company, headquartered in Israel with offices in the USA, Europe and Asia Pacific, and serves customers in more than 100 countries worldwide. For more information, visit Kornit Digital at www.kornit.com

For more information on Custom Gateway, please visit Custom Gateway’s websit

Here is what Custom Gateway has to say:

Kornit Digital and Custom Gateway have tied the knot!

Today, when consumer demand can change on a single news story or social media trend, digital decoration is the best match for meeting those disruptions with the necessary agility, quality, and responsible production practices.

You’ve likely heard the virtues of digital textile printing: Imprint any image to most fabrics, in any quantity, at the push of a button, and do so profitably. Eliminate costly inventory and print only what you’ve sold.

But digital printing is only one piece of the fulfillment puzzle, and our longstanding partnership with Kornit Digital has demonstrated the value of extending the promise of digital to the complete, end-to-end production experience. Our organizations have long been unified by a vision of digitizing the on-demand print industry, and the latest news brings two talented, world-class cultures of innovation together in making that vision a reality.

Think of it this way: Kornit Digital technology improves, streamlines, and stabilizes your production model. Adding Custom Gateway workflow solutions to the equation improves, streamlines, and stabilizes your business model. We’ve seen this dynamic up close with several of our most successful customers, and believe it’s key to creating opportunity and growth throughout our customer base.

More than ever—and especially in the post-COVID retail paradigm—today’s consumer is online-based.

With a simple mechanism for placing orders while managing inventory and production, Custom Gateway enables brands and fulfillers to optimize their online stores and, moreover, to connect and synchronize with their print house for inventory and production management. The SaaS-based workflow mechanism routes and prioritizes orders digitally, in conjunction with that business’s specified supply chain model. Whether it’s online only, online plus inventory management, online plus inventory and production management—there’s a customized tool for each business’s requirements.

Throughout the process, management gains key insights into production, resource, and projection data, while empowered to offer consumers complete visibility to the status of their orders. In terms of digitizing the production experience, Custom Gateway’s capabilities offer a substantial supplement to Kornit’s Konnect platform for remote management of print productivity.

With an amazing gathering of talent and a global R&D and support network that is second to none, we’re confident this will be a prosperous union for both Kornit, Custom Gateway and our respective customers. Here’s to another step towards true digital transformation in the imprinted textiles and apparel industry!

If you are a current Kornit Digital customer interested in learning about what Custom Gateway workflow technology can do for you, contact your regional Kornit Sales representative. If you’re not, but very much interested in ways digital can grow your production capabilities, email kornit@custom-gateway.com  for more information.