Subject to the usual conditions, the acquisition is expected to be completed in the third quarter of 2003.

Presstek president and chief executive Ed Marino said the acquisition had been specifically designed to solidify Presstek's position in the processless plate market.

He said the move will enable the company to grow its position by increasing the strength of its Anthem family of plate products.

Competition has hotted up in Presstek's core processless plate market this year, with both Agfa and Creo launching new products at Drupa.

Precision president Edward Klepacki Jr., said Presstek's "strong financial footing" would allow Precision to expand the market for its full range of plate products.

Precision Lithograining is one of the largest independent plate manufacturers in North America. Its plate portfolio includes both conventional and digital printing plates for web and sheetfed printing.

Both companies will maintain their respective operations, with Precision operating as a wholly owned subsidiary of Presstek.