Yoav Z. Chelouche

HERZLIA, ISRAEL—Vancouver, Canada-based Creo Products and Scitex Corp., based here, have entered into an agreement to combine their prepress businesses in the worldwide market for digital prepress equipment. The combined entity will be a US$635 million organization with approximately 4,200 employees worldwide. Under the terms of the agreement, Creo will acquire the assets of Scitex's digital preprint business in exchange for 13.25 million Creo shares valued at some US$537 million. Upon completion of the transaction, Scitex will become a major shareholder in Creo, with about 27 percent of the shares. The new graphic arts group—tentatively named Creo/Scitex—will operate as a division of Creo Products.