The deal will make Kodak one of the top three suppliers in the sector, along with Hewlett-Packard and Epson-based machines.
Kodak expects the buy to contribute to its earnings from 2003.
Encad president and chief executive Terry Vandewarker said Kodak had the resources, complementary skills and market presence Encad needed to accelerate its growth.
Kodak expects the deal to be completed by early 2002. The acquisition builds on its launch of the Kodak Professional 5260 piezo ink-jet printer.
Have your say in the Printweek Poll
Related stories
Latest comments
"No Mr Bond, I expect you to di-rect mail"
"I'm sure this will go down well with print supply chain vendors. What terms is it that ADM are after - 180 days is it?"
"Hello Set Off,
Unencumbered assets that weren't on the Reflections books, I believe.
Best regards,
Jo"
Up next...
Low-cost entry to DTG market
Star product: Kornit Apollo
On-demand printer looks to grow