The Colorado, US-based financial, commercial and ID card manufacturer, which already has UK production sites in Colchester and Liverpool, bought ID Data Cards to strengthen its UK and European capability.

CPI president and chief executive Steve Montross said that he was "excited" by the deal, which is in line with the group's strategy to create a global secure card production, personalisation and fulfillment platform to offer its financial and prepaid card customers.

"Through this acquisition, CPI will combine its expertise with that of ID Data to offer increased card production and service capabilities and deeper global solutions for our customers as well as the customers of ID Data," he added.

"We are also excited to now have secure card and personalisation capabilities to address the needs of the participants in the UK and European financial markets and to support our global customers whose activities extend to these markets."

Tall Group set up ID Data Cards in December 2009 to buy the trade and assets of Card Data Management out of administration for a total consideration of £270,000.

Since then the group has invested in new technology at the Petersfield, Hampshire-based business and recorded several significant contract wins, including a recent £4m deal with the NHS.

The company manufactured 42m secure cards and commercial cards in 2011 for organisations in the banking, retail, leisure and government sectors. Following CPI's acquisition of ID Data Cards, it will have manufacturing capacity for more than 450m cards per year and have a major presence in the prepaid, banking, retail and government markets.

Tall Group managing director Martin Ruda said: "CPI provides a solid strategic foundation to further grow the business. Given that CPI Card Group has been around for 30 years in this business, they can bring significant experience to the table in terms of service, solutions and knowledge for ID Data clients."

David Green, associate director at RSM Tenon, which advised on the sale, said: "We are delighted to have achieved a sale of the assets of ID Data to CPI. The transaction is the culmination of weeks of hard work by CPI, the TALL Group of Companies, RSM Tenon and their advisers and provides a welcome opportunity for growth and investment in the business."