New York, Feb. 1 (Reuters): Eastman Kodak said on Monday it would buy printing technology firm Creo Inc for about $980 million in cash to bolster its strategy to push more aggressively into commercial printing.

Kodak, which has been undertaking a transition to digital products as it shifts focus from its flagging traditional film business, will pay $16.50 a share for Creo, whose systems manage images and convert computer files into plates used to print books, magazines and other products.

The deal was backed by Creo?s board and a dissident shareholder group, which spurred the takeover by launching a proxy battle in October.

?(Kodak) will gain access to Creo?s 25,000 commercial print customers (and) Creo?s software expertise should prove beneficial to Kodak,? said Cross Research analyst Shannon Cross.

Cross added that the deal eliminates a growing competitive threat that Creo posed to Kodak Polychrome Graphics, a maker of commercial graphics films and plates.

Kodak chief executive Dan Carp told analysts that, with this deal, the company has ?essentially reached the conclusion? of its acquisition plan, under which it earmarked up to $3 billion between 2003, when its strategic shift was announced, and 2006.

Creo's management has been under pressure from Goodwood Inc. and Burton Capital Management, who together hold about 6 per cent of the Vancouver, British Columbia-based company?s shares and have sought to oust chief executive Amos Michelson.

Goodwood and Burton said on Monday they would back the bid because it met their objective of boosting shareholder value.

Creo's stock has climbed 89 per cent since the dissidents launched their campaign to overthrow the board and management.

Creo said it will postpone its shareholders meeting to March 29 from February 10.