British Columbia

Kodak snaps up Vancouver's Creo Inc.

Digital imaging company Creo Inc. has agreed to a takeover worth $980 million US in cash by Eastman Kodak Co.

Digital imaging company Creo Inc. has agreed to a takeover worth $980 million US in cash by Eastman Kodak Co.

The deal values Vancouver-based Creo at $16.50 US a share.

"Today we conclude a strategic review process that began last summer," said Amos Michelson, Creo's chief executive officer.

"The economy of scale gained by combining resources will allow us to speed up product development and deliver new innovations and breakthrough solutions to the market," Michelson said.

Creo provides software used by printers to manage the movement of text, graphics and images from the computer screen to the printing press.

The boards of Creo and Rochester, N.Y.-based Kodak have approved the takeover, which will be voted on by Creo shareholders on March 29. Creo's annual and special shareholders meeting originally set for Feb. 10 has been postponed.

Creo had been the target of a shareholder revolt, with dissident owners pushing for the ouster of the current board of directors and management, and the installation of Robert Burton as chairman and CEO. Burton led a turnaround at Moore Corp.