on Tuesday took a small step in its big move toward a digital future, by acquiring Scitex Digital Printing for $250 million.
The Rochester, N.Y.-based photographic film giant recently slashed its dividend to help fund a $3 billion war chest for acquisitions in the digital world.
Under terms of the deal, Kodak will pay all cash for the subsidiary of Dayton, Ohio-based
, which specializes in high-speed digital printing technology.
"We are moving decisively to implement our growth strategy by expanding into a range of commercial digital businesses," said Daniel A. Carp, Kodak's chairman and CEO "One part of that strategy is to acquire in a disciplined manner companies and technologies that complement our existing businesses, capabilities and assets."
Kodak said it estimates the acquisition will add $190 million in revenue in its first full year.
Kodak's shares have slumped since the company announced its digital strategy in September, with some shareholders considering it too risky. The move included a 72% reduction in the company's stock dividend.
Since then, billionaire investor Carl Icahn received regulatory approval to acquire a major stake in the company, fueling speculation about his intentions.
Recently, Kodak shares were down 24 cents, or 1%, to $24.28. Scitex shares rose 33 cents, or almost 7%, to $5.28 in very heavy trading.