The Ohio-based firm will return to the American imaging group, which sold the firm, known as Diconix under Kodaks ownership, to Scitex a decade ago.

The acquisition is the first action that backs Kodaks recently announced strategy to focus on commercial print as one of three key markets.

The acquisition of SDP is a prime example of how we intend to build upon ink-jet technology developed on our own to build business in growing market segments, said Kodak chief executive Daniel Carp.

This is the first of several actions Kodak will take to expand in the digital commercial printing industry.

Scitex president and chief executive Nachun Shamir, who also heads up SDP, is expected to join Kodak as part of the acquisition. He will report to James Langley, Kodaks president of commercial printing.

Langley has said Kodak will combine its own ink-jet technology with SDPs to create lower-cost machines.

This will open new opportunities for us and give clients faster, better and less costly solutions for their variable data printing needs, Langley said.

SDP has already been working hard on developing more affordable machines, releasing a new range at Xplor last month.

Kodak has paid 147m ($250m) in cash for SDP. It has allocated 1.76bn ($3bn) for acquisition and investment in digital technology.

Industry speculation had suggested that Scitex was talking to Xerox about SDP, as Xerox had an agreement with SDP to sell some of its VersaMark machines in Europe.

As PrintWeek went to press there was no information on whether this deal would continue under Kodaks ownership.

Story by Barney Cox