The company, previously a supplier of Konica Minolta, will now begin supplying light production equipment such as the Xerox 700, as well as offering managed print services. It will also provide a range of Xerox office equipment.

IBS, established in 1972, employs 130 staff across eight operations that include Belfast, as well as Republic Of Ireland (ROI) offices in Dublin, Cork and Limerick.

Robert Corbishley, European and UK PR manager within Xerox Europe, said channel expansion had been a strategic plan at Xerox for some time.

"This acquisition will expand our presence across Ireland and allow IBS to offer Xerox equipment and services to more than 11,000 customers," he added.

The all-cash takeover of IBS, which will operate as a wholly owned subsidiary of Xerox, follows the latter's acquisition of Veenman in the Netherlands in 2008. The acquisitions improve Xerox's distribution channels to the SME business market.

Jerry Carey, group managing director at IBS, said the deal was "great news for both our customers and our employees".

He added: "We can now offer all the benefits of Xerox’s brand-leading products and managed print services expertise to our customers."

Xerox, which has bought eight businesses in the past two years, currently employs more than 700 staff in the ROI and Northern Ireland.

Commenting on the sale, Douraid Zaghouani, senior vice-president of the European Channels Group at Xerox Europe, said: "IBS is a strong office technology and managed print services provider in Ireland.

"Their extensive distribution and customer support complement the benefits of Xerox’s technology and solutions. Together, we strengthen the value proposition we bring to small- and mid-size businesses, as well as expanding our managed print services offerings."