The Carlisle-based company is set to take delivery of the monochrome inkjet printhead at the end of May and intends to use it in line with its eight-tower KBA Comet newspaper press.
Guy Forrester, general manager at the group's print division, said the business was exploring the commercial opportunities of using the Stream Inkjet technology with an offset press.
He said: "The new kit will give us extra flexibility and a high-quality match with newsprint is already evident.
"We're assessing the concept, the quality and the speeds of the S10, and we're already enjoying litho-class content on images and graphics, as well as text."
The Prosper S10 is a continuous inkjet system for inline digital printing on high-speed web devices. It runs at 305m per minute at a resolution of 600dpi. It has a print width of 10.56cm and uses pigment-based inks that are fade, scratch and water resistant.
Forrester added: "At present, we're printing 60,000 newspapers per hour, and if we can maintain these speeds and print variable data inline, it will be a huge boost to our business."
In addition, CN Newsprint has been testing speciality applications such as retail marketing, vouchers, interactive games and lotteries.
The company prints inserts for customers including supermarkets, and said it was also looking at barcode printing for inclusion in retail promotions.
"We have been talking to new prospects as a result of the purchase," Forrester said. "It will increase our volume and diversify our offering, which is a huge advantage."
CN Newsprint is the print division of the CN Group, a family-run business which consists of publishing, print and radio divisions, as well as 43 websites.
Its print production includes tabloid and broadsheet newspapers, quarter-fold magazines, newsletters and supplements.