The new company, which will retain the Face name, has also ordered a Xeikon 5000, with delivery expected in the autumn.

CDP, currently based in the City, will move its 10 staff and equipment including an HP Indigo 1000 and a Xeikon 50i into Face's Islington plant as of Monday.

The companies cited falling profit margins and the need to make savings, particularly on premises, as a principle reason for the merger.

"The print industry is depressed, and this is a realisation of fact," said Face sales and marketing director Steven Hars. "We've got two like-minded companies with hardly any crossover, so there's a natural blend there."

No redundancies were expected, although Hars said that he expected "one or two natural wastages".

"We don't envisage any fall-off in business or clients, because there's no crossover. Personnel will be complete," said Hars.

The CDP kit will run alongside Face's four digital presses, including two HP Indigo 3000s, one Xeikon 50i and a Xerox DocuColor 2060.

Hars said that existing CDP clients would see "the large-format side of things increased substantially, with far greater reprographic backup", and would also benefit from 24-hour printing.

Face's order of a Xeikon 5000 follows the lead of local rival 1st Byte, which ordered the press in April. Face managing director Bill Harding said that the order was "a great leap forward for the new company in terms of quality and opportunity".

Patrick Kane, managing director of CDP, added that the merged entity aimed to "overtake 1st Byte".