Rochester, NY-based Eastman Kodak Co. enters a definitive agreement Jan. 31 to acquire prepress hardware/software vendor Creo, Inc., Vancouver, British Columbia, Canada, in a deal worth approximately $980 million in cash.

By adding Creo to its line-up of digital and traditional printing products and solutions, Kodak's Graphic Communications Group (GCG) reinforces its status as a leading industry participant where digital, traditional and hybrid print jobs are converging, Kodak says.

"Graphic Communications represents one of the three pillars of Kodak's digitally oriented growth strategy," says Daniel A. Carp, Kodak chairman/CEO. "The purchase of Creo strengthens that pillar, and essentially concludes the company's acquisition plan, announced in September 2003."

In 2006, Kodak expects approximately $700 million of incremental revenue from Creo, whose sales in the 2004 fiscal year totaled $636 million and whose gross margins exceed 40 percent.

The proposed transaction follows the Jan. 12 announcement that Kodak will become the sole owner of Kodak Polychrome Graphics (KPG), its joint venture with Sun Chemical Corp. KPG is a leading supplier of digital and conventional lithographic plates, digital color-proofing products and graphic-arts films, with strong worldwide distribution.