The deal, which was reported by PrintWeek last month, is expected to close in July 2010 and will lead to the creation of a new direct mail and transactional print giant comprising both companies' operations.

DST Systems will contribute the debt-free UK operations of DST Output to the deal, as well as additional working capital in the form of cash and loans, while Dsicmm's owners will offer up the entire issued share capital of Dsicmm Group.

Essex-based Dsicmm, which generates annual revenues of around £76m, will be the subordinate partner in the new company, taking just 35% of the shares, despite the fact that it is almost three times the size of DST Output's £26m-turnover UK operation.

For more information see next week's PrintWeek.