The deal is still subject to due diligence and regulatory approval, but it is hoped that it will be completed by the end of the year.

Scitex will hold just over 70% of the new firm, while Aprions other shareholders including Toyo Inks, IBM and Hitachi will have holdings in the new company equivalent to half of what they had in Aprion.

Last month, Aprion president and chief executive Miki Nagler said his firm was in talks (PrintWeek, 18 October).

In February 2000, he claimed that Aprion would be a 64m-turnover ($100m) firm within three years. It made its first sales in the second quarter this year and has so far sold 17 of its machines, which cost 350,000.

Were merging not due to a problem, but due to the firms strengths Scitex Vision in sales and distribution and Aprion in technology, said Nagler.

Scitex Vision president and chief executive Dov Ofer will head the new firm, taking the same position.

Story by Barney Cox