Ricoh said the acquisition was intended to strengthen its industrial printing business and that it was particularly attracted by ColorGate's specialism in colour management. The transfer of shares is expected to be complete on 30 November.

ColorGate previously collaborated with Ricoh on the new Pro T7210, the manufacturer’s first wide-format UK flatbed, which entered UK markets in September. Priced at £200,000 in full configuration, it makes use of a RIP from ColorGate.

Discussions over a potential acquisition began around six months ago.

A Ricoh spokesperson said: “There are obvious business synergies in the activities of Ricoh and ColorGate. Leveraging the breadth of Ricoh's market reach and ColorGate’s industrial software competence was key in this decision. Software is an essential part of the total solutions Ricoh is committed to offering customers and partners in this business area.

“In February this year, Ricoh announced its growth strategy plan, Ricoh Ignite, which sets out its intention to reinforce its value offering by expanding its printing technology portfolio. The investment in ColorGate is the latest part of this plan.

“By combining ColorGate’s proprietary software technology with our own industrial printers, Ricoh will provide solutions covering the whole printing workflow from pre-press to post-press.”

ColorGate currently employs 35 members of staff at its Hannover, Germany base and Ricoh has no plans to make changes to this structure.

Ricoh’s next move is to fully integrate ColorGate into its offering, so the manufacturer becomes a “one-stop-shop for analogue to digital conversion”.

Markets primarily targeted by ColorGate include décor and textiles, specialising in colour management and workflow software to standardise and automate the digital process.

ColorGate’s brand identity will remain following the completion of the acquisition.