Nik Software has announced that it has reached an agreement with Nikon to develop and distribute software (and technology), the agreement also includes an investment in Nik by Nikon (you have to love the name coincidence).

Press Release:

Nik Software, Inc. Announces Investment and Cooperative Agreement with Nikon Corporation Companies to jointly develop and distribute digital photographic software and technologies

San Diego, CA – February 14, 2006 – Nik Software, Inc. (formerly Nik Multimedia, Inc.) announces that it has reached a worldwide agreement with Nikon Corporation (Tokyo, Japan) that enables technological collaboration between the two companies to develop and distribute digital photographic software and imaging technologies. This agreement builds upon Nik’s existing collaborative relationship with Nikon Corporation, which produced and distributed proprietary versions of Nik’s award-winning Nik Color Efex Pro™ plug-ins for use in Nikon Capture software.

As part of the agreement, Nikon has made a capital investment in Nik Software, Inc. Terms of the agreement are not disclosed.

“This cooperative agreement enables both Nikon and Nik to fulfill their common commitment to continuously develop advanced products and technology for the booming digital photography market,” said Michael J. Slater, president & CEO of Nik Software, Inc. “We look forward to working with Nikon to build a strong digital imaging software business by leveraging both our companies’ proprietary technologies and photo-imaging know-how.”

Nikon and Nik will co-develop software products and distribute those products through Nikon’s world-wide sales channels while Nik Software, Inc. will continue to independently develop and support its Nik branded software products to its world-wide customer base.

Established in 1995 by its founder Nils Kokemohr and incorporated in 2001 by its current management, the company, with headquarters in the United States and offices in Germany, has been privately held and privately funded by the company’s executive management since its inception. The investment by Nikon is the first external investment in the company.