The industry needs this as the marketplace is moving quickly, X-Rite managing director Geoff Balfour (pictured) said of the takeover of the rival colour-management firm.

We will be able to speed up developments instead of competing all the time, so its good news for the market.

The firm will be called X-Rite, but product branding is undecided. GretagMacbeth has some strong brand recognition.

The deal would lead to around 14m of savings a year, but job losses from the global 1,050 staff were likely. "Its fairly obvious there are overlaps, said the firm.

Balfour expected the joint turnover of 135m to grow by around 12% year-on-year from around 2007.

X-Rite has strengths in management systems and structures, cost processes, sales and marketing. GretagMacbeth is hot on research, development and technology.

Four bosses will form the X-Rite top tier, said Balfour. X-Rite chief executive Michael Ferrara is to be joined by Gretags ex-chief executive Thomas Vacchiano, who will be chief operating officer. X-Rite chief financial officer Mary Chowning keeps the post, as does Francis Lamy, who was Gretags chief technology officer.

The deal for Amazys Holding, which makes kit under the GretagMacbeth brand, was threatened in March when Swiss firm Eichhof talked of a hostile takeover bid, said Balfour. It pulled out a month later.

The deal is suject to regulatory approval.