Canon is to buy Dutch copier and printer maker Océ for €730 million after the companies suffered from the economic slump.
In a joint statement, the firms said Canon intends to make an offer for €8.60 per share and that Océ's management and supervisory boards support and will recommend the intended offer.
"Through the merger of Canon and Océ, we believe that we will be able to realize clear benefits, not only in the area of R&D, but also in terms of product mix and marketing," Canon chief operations officer Tsuneji Uchida said in a statement.
Océ chief executive Rokus van Iperen said including debt and other obligations, the deal values Océ - which competes with Xerox and Konica Minolta - at about €1.5 billion.
Preference share holders Ducatus, ASR and ING - which together hold 19 per cent of the Océ's share capital - agreed to sell their interests to Canon, while Océ shareholder Bestinver Gestion SA has agreed to tender its 9.5 per cent stake.