Japan-based Canon has made an offer of €8.60 ($A13.76) per Océ share, which represents a premium of 70% more than the company's closing share price at the end of play on November 13, valuing the company at €730m.
The deal hinges on the offer being accepted by Océ's ordinary shareholders, a decision that has been fully recommended by the company's board.
If the acquisition goes ahead, Océ would remain a separate legal entity as a Canon division, with Canon planning to refinance both the short and long-term debt of Océ, valued at €704m ($A1.13bn), as required. This gives the deal a total value of €1.5bn ($A2.4bn) with no redundancies planned as part of the agreement, Canon said.
"We are delighted to welcome Océ, the ideal partner in every respect, into the Canon Group," said Tsuneji Uchida, president and chief operating officer at Canon.
"Through the merger of Canon and Océ, we believe that we will be able to realise clear benefits, not only in the area of R&D, but also in terms of product mix and marketing and are confident that this winning combination will contribute greatly to our goal of becoming the overall number one presence in the printing industry."
Earlier this year, Océ announced it would cut an additional 800 positions as part of on-going restructuring operations in a bid to ensure its position as an independent company.
Speaking about the deal with Canon, Océ's chief executive Rokus van Iperen said: "There is a great fit between our companies, which share similar values and a strong commitment to technology and innovation."
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