The deal, which is expected to close by the end of July, is the result of four years of "intense cooperation" between the two companies.

Carsten Knudsen, president and chief executive of EskoArtwork, said: "EskoArtwork and MGE started their close cooperation in 2004 with the integration of MGE's i-cut vision system onto our Kongsberg digital converting tables."

Since then, MGE has become the distributor for EskoArtwork's Kongsberg i-XL and i-XE digital converting tables into the US sign and display markets.

MGE owner and president Steen Mikkelsen said: "By fully aligning our development and distribution efforts with EskoArtwork's technologies and global sales and support channels we will be able to bring even more attractive and performant [sic] converting systems to the digital printing and sign and display markets."

The merger will result in US-based MGE's operations being organised as a strategic business unit within EskoArtwork under the leadership of Mikkelsen.