The company, which is listed on the London Stock Exchange, said it had signed a definitive agreement for the sale to Konica Minolta Business Solutions USA and that it expected the deal to be completed by 30 June.

It is subject to US and UK regulatory approval and still needs the go-ahead from Danka's shareholders.

Following the deal, Danka, which last year posted a loss of $13m, will delist from the stock market and go into voluntary liquidation.

Danka said that the Danka Office Imaging Company (DOIC) would maintain its current offices after the deal and that it would begin to add Konica Minolta equipment to the product mix starting in the middle of 2008.

Jun Haraguchi, president and CEO of Konica Minolta, said: "Konica Minolta's acquisition of DOIC will further enhance our leadership in the colour and high volume production print markets while complementing our overall growth strategy with our independent dealers and branch network.

"We're excited about the prospects that this strategic acquisition will create, and believe the combined strength of the new organisation will be beneficial to our customers, the DOIC customer base and the DOIC employee family."

Konica Minolta will pay $240m in cash, although this figure could go up or down by $10m depending on net worth adjustments.