The Leinster Leader newspaper group, based in Co Kildare, has acquired the Dundalk Democrat in a deal believed to be worth about £2 million (€2.5 million).

Staff at the Leinster Leader in Naas were informed of the deal yesterday, its editor, Mr Michael Sheerin, said.

Workers at the Dundalk paper were also told of the deal yesterday, although it is subject to regulatory approval on competition grounds. The Leinster Leader acquired two titles in Co Offaly - the Leinster Express and the Offaly Express - last year for an undisclosed sum.

The Dundalk title, sold by members of the Roe family, is one of the State's oldest. Founded in October 1849, it employs about 20 people and had a weekly circulation last year of about 16,000.

The newspaper is perceived not to have moved with the times and still carries only advertisements on its front page. The Leinster Leader is seen as technologically advanced and it is thought likely the company will invest in new systems at the Dundalk title.

The Drogheda Independent and the Argus, its main competitors in Co Louth, are both owned by Independent News & Media.