June 6, 2006 11:17 AM PDT

HP to buy Silverwire

Hewlett-Packard has signed an agreement to buy Silverwire Holding, a software company that specializes in digital imaging systems. The company, headquartered in Zug, Switzerland, is expected to improve HP's position in retail photo and printing services, HP said in a statement on Tuesday.

Silverwire offers software for commercial photo kiosks, mini-labs, mobile imaging, personal photo management, and automated Internet ordering and printing systems. The company's lab software is compatible with Agfa, Gretag, Fuji, Noritsu and Kodak mini-labs, among others. In May, HP announced that it would be focusing on the consumer digital imaging market, releasing more than 100 new products by the end of the year. Last March, HP purchased Snapfish.com the digital online photo service, which it now includes with its digital camera software.

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