"This reflects Xaar's ongoing belief that its ink-jet technology has a major role to play in both the traditional web-based printing markets and the new technology markets of the future," said Xaar finance director and deputy chief executive Nigel Berry.

One of iTi's initial uses for the Xaar heads will be on its small web transport, for researching and prototyping high-speed web printing applications.

Berry said: "We won't be developing new heads to start with, what iTi is doing is incorporating our heads into the equipment."

The deal will allow both firms to develop important ink-jet markets of the future, including electronic fluids technology. "We're doing it as an enabler to demonstrate ink-jet to a wider audience," said Berry.

It is hoped that the initiative could open up new markets for Xaar and lead to interest from manufacturers of, among others, OLED flat panel displays, organic solar cell technology, plastic electronics, smart packaging and RFID.

Story by Darryl Danielli