Imagistics International said on Friday that Océ, a Dutch printing and document management service provider, would acquire Imagistics in a $754-million deal to create a major document-imaging company in the United States to challenge leaders such as Xerox.

Océ will pay $42 per share for all outstanding shares of Imagistics common stock. The purchase price includes assumption of net debt of $68 million from Imagistics.

Océ hopes its acquisition of the Trumbull, Connecticut-based Imagistics will increase the Venlo, Netherlands-based company’s distribution breadth and presence in the U.S. corporate printing and office markets.

The combined company will also be able to better service national and international customers in the U.S. and Europe. They also see complementary capabilities. Océ offers wide-format, high-speed commercial and corporate printing systems, while Imagistics targets mid- and lower-volume speeds within the office market.

“Together, Océ and Imagistics will make a powerful combination, as our companies clearly complement each other,” said Marc C. Breslawsky, chairman of Imagistics. “Our customers will have comprehensive product coverage across all segments, all from one company, across the world.”

“This acquisition accomplishes Océ’s strategic goal to expand and strengthen distribution power, in particular in the U.S. market,” said Rokus van Iperen, chairman of Océ. “We believe that culturally and strategically, Océ and Imagistics are an excellent fit.”

Imagistics management will remain in place in Trumbull, and Mr. Breslawsky will join the Océ board of directors.

Competing in the U.S.

The transaction will enable Océ to better compete against major U.S. office equipment providers such as Xerox and Canon.

“Océ already competes with Xerox,” said Marv Pollack, vice president of corporate communications for Chicago-based Océ North America. “We are a $2.8-billion company that services broad parts of the digital printing market. The proposed acquisition of Imagistics greatly expands our distribution capability in the U.S.”

He pointed out that the U.S. already represents about 40 percent of Océ’s sales of about $1.2 billion in the U.S.

“This transaction expands our product line and distribution capability geographically and into the lower volume segments in the office,” he added. “We already have the leading market share in the wide-format, high-speed printing segments.”

Océ expects the deal to close in the fourth quarter. Merrill Lynch advised Imagistics in the transaction.

Shares of Océ were down $0.04 to $15.76 in recent trading, while shares of Imagistics were up $8.80 to $41.78.