Under the terms of the deal, Quad Graphics has acquired a minority stake in YUDU and will add its range of digital publishing products to its portfolio to "connect print and online channels".

Joel Quadracci, president and chief executive of Quad Graphics, said that the move responded to increased client demand for "multiple communication approaches".

He added: "Digital publishing does not replace ink on paper, but rather enhances it. It's a multi-channel world and we aim to be at the forefront of bridging the print world with the electronic world."

The deal will also enable YUDU to harness Quad Graphics' scale as it expands into the US.

Richard Stephenson, chief executive of YUDU said that the deal will allow the business to avoid the "crash and burn venture capital strategy" that he said many companies in the sector had experienced.