The deal will help the innovative Cheltenham-based firm to increase sales of its B2 Python and B3 Cobra (pictured) metal platesetters in the US and also help fund expanding its product range.

Discussions between the two firms started last year when Printware approached HighWater about the possibility of supplying a 2pp metal platesetter.

"We have been working on development projects with HighWater over this past year," said Printware chief executive Stan Goldberg. "During this period we realised the merits of combining our business efforts."

That initially led to Printware launching a version of HighWater's Cobra B3 machine as the PlateStream Violet at Print 05 in Chicago last September.

"We started a conversation nine months ago," said HighWater director of sales Peter Flynn. "They came to us because their customers were moving to metal plates. When we met we saw that the synergy was great and also discussed using our [Torrent] RIP."

HighWater will remain as a standalone division of Printware and continue to operate from Cheltenham with the current staff and management.

Flynn said under the new deal, funding would be available for developments that could include a larger-format metal platesetter and possibly a new polyester machine.

He added it would also allow it to develop its workflow business and to follow up the success of its Torrent Connect to drive Creo Trendsetters with a version for the Lotem. This would provide a boost to the secondhand CTP market, which has suffered from the relatively high-cost of the original workflows compared to the secondhand value of the platesetters.

The first Cobra/PlateStream Violet machines are now shipping with orders to keep the HighWater factory full until the end of April.