(Amazon Kindle News) Prime View International (PVI), a leading supplier of ePaper display modules, has signed an agreement to acquire E-Ink Corporation, which deals with electronic paper display materials, including the ones used in Amazon.com’s Kindle 2 and Kindle DX. The cost of the acquisition is $215 million.

The move comes as the market for electronic book readers takes off.

“The market for electronic book devices such as the SONY Reader and Amazon Kindle is forecasted to grow from 1.1 million units in 2008 to 20 million units in 2012, a cumulative annual growth rate of 105% over the four-year period,” said iSuppli analyst Vinita Jakhanwal, “PVI and E Ink enabled this market back in 2005 and they have been the display market leaders ever since.”

The move is expected to brind down the price of electronic paper display materials, although not in the immediate future. Time will be needed for the two companies to transition into one, focused virtually exclusively on the ePaper marketplace.

E-Ink’s electronic reading technology is not only popular in ereaders, but also in cell phones.