The deal, announced last Friday (25 October), was expected to be revealed at last months Graph Expo. The value of the deal has not been disclosed.

According to Printchannel chief executive Oliver Pflug the delay was due to legal discussions on the patent front. Printchannel had a licensing agreement with ImageX, Printcafe and ImageX have reached an agreement in principal.

Printcafe shareholder and partner Creo will gain ownership and development responsibilities for the content management portions of the Printchannel Classic and Print I/O.

Customers welcomed the news most are expected to transfer their contracts to Printcafe.

Were delighted, said Chris Gosler, partner at Reading user Conservatree. As long as Printchannel stays up and running were going to stick with it.

As PrintWeek went to press Printcafe had yet to decide which Printchannel staff it would take on. Pflug has relocated to New Zealand and wont be involved. Printchannel Europe commercial director Sean Whelan said: Its unlikely Ill be involved, but Im not going to join a competitor.

Printchannel Europe is being put into voluntary liquidation. A creditors meeting is set for 13 November. It is being dealt with by reporting accountant David Rubin & Partners.

Comments made by Pflug on US website Whattheythink.com about the reasons for the firms demise have angered former staff. He claimed that sales staff took early bookings that should not have been recorded on the books. When these deals failed to be converted to orders it left the firm struggling. His comments follow earlier statements to PrintWeek in which he claimed the firms venture capital backers pulled the plug.

Story by Barney Cox