Brother makes £1bn bid for print firm Domino

The proposal has been backed by Domino's board

Domino Printing Sciences, which employs more than 2,000 staff, is set to be taken over by Japan's Brother in a deal worth £1 billion.

Cambridge-based Domino Printing Sciences was founded in 1978 and serves manufacturers who need to code, mark or print data, information or images on to their products or packaging.

The proposal from Brother, which has been backed by the Domino board, valued the FTSE 250 Index company at a 27% premium to its share price last night. It is possible that another company could gatecrash the deal.

Its chairman Peter Byrom said Brother's offer was "compelling and timely" as it would allow the company to compete with competitors with significantly greater scale and financial firepower.

He added: "It has become increasingly clear that maintaining its position in the enlarged markets will require Domino to find the appropriate partner that brings complementary skills and strengths in digital printing."

Brother's portfolio includes laser and inkjet printers, as well as sewing machines, machine tools and industrial parts.