STAMFORD, Conn. -- Xerox Corp. has reached an agreement to purchase the color printing division of Tektronix Inc. for $950 million.
The deal will make Xerox second only to Hewlett-Packard in the office color printing market.
Xerox officials said today the acquisition will allow the company to compete more effectively with Hewlett-Packard by combining Tektronix color printing technologies with Xerox's black-and-white workgroup printers.
The purchase, which would be the largest ever for Xerox, is expected to close within 60 days. The deal is subject to regulatory approval.
The deal will give Xerox the Tektronix line of Phaser color laser and solid ink printers, which last year logged nearly $725 million in sales. It also will nearly double Xerox's distribution capacity to more than 16,000 resellers and dealers worldwide.
Stamford-based Xerox said the combined business will hold more than 30 percent of the rapidly growing market for office color printing.
Tektronix's printing division, with approximately 2,400 employees, is based in Wilsonville, Ore.