Ikon is currently well positioned in the low-end production, inplant and office equipment market, and the move by Ricoh will see it take market share from Canon.

The kit manufacturer is staying tight-lipped on the details of the acquisition but Zenji Miura, Ricoh US's chief financial officer, told Reuters that the company plans to replace Ikon's Canon products with its own printers and copiers in three to four years.

Canon machines currently represent around 60% of the products Ikon handles, while Ricoh machines account for around 30%. The company also sells Xerox kit.

In addition, the acquisition will see Ricoh add 400 sales locations in the US, Canada and Western Europe.

Shiro Kondo, president and chief executive of Ricoh, said: "Ikon has advanced professional services capabilities with a long list of satisfied large customers. Ikon is respected as well for its production print sales and service expertise."

Ikon chairman and chief executive officer Matthew Espe added: "Following an extensive review of our strategic opportunities, our board conducted a formal process to evaluate alternatives for the company and has approved this attractive transaction for our shareholders, customers and employees."

Large financial firms have speculated on the deal's repercussions. UBS AG said the acquisition could cause Canon's North American revenue to fall by as much as half, while Merrill Lynch estimates the company's overall sales would drop about 3% if it lost Ikon as a distributor.

Canon was not available for comment as PrintWeek went to press.