Macclesfield-based software firm Custom Gateway has been acquired by Israel-headquartered Kornit Digital.

A developer of cloud-based workflow software for on-demand production, Custom Gateway has 300 customers globally including fashion retailer Next.

Kornit has over 500 employees and a main R&D and manufacturing base in Israel with offices in New Jersey, Dusseldorf, Hong Kong, Shanghai and Miami. It grew revenues by 25% to $142.4 million for the year ending December 2018.

Kornit CEO Ronen Samuel said: "I am very pleased to announce the acquisition of Custom Gateway as we augment our market-leading capabilities with their powerful software, which we've evaluated thoroughly, including via several strategic customers we share.

"Brands, retailers, suppliers, and fulfillers of all sizes stand to grow considerably through digital transformation, and with Custom Gateway, Kornit will revolutionize on-demand digital textile production with a unique end-to-end solution, giving us a powerful competitive advantage in the market."

Andrew Talbot, Custom Gateway's CEO and co-founder, added: "Together, we will provide global brands and fulfillers optimal control of their business, ensuring swift, socially responsible fulfillment, and in a profitable model that produces and ships orders in real time, without excess inventory or labor."