Tags: Lexmark | Kofax | merger | software

Lexmark to Buy Kofax for About $1 Billion to Boost Software

Tuesday, 24 Mar 2015 05:19 PM

Lexmark International Inc., known for its printers, said it would buy Kofax Ltd. for about $1 billion to double the size of its enterprise software business.

Lexmark's $11 per share cash offer represents a 46.7 percent premium to Kofax stock's Tuesday close of $7.50 on the Nasdaq.

Kofax shares were up 35.7 percent at $10.18 in extended trading. Lexmark shares rose nearly 7 percent.

Lexmark said it expects the deal to "significantly" expand operating margins in its software business, which would now be worth about $700 million.

Printer makers have struggled in the recent past as companies reduced printing to cut costs and customers shifted to mobile devices from PCs.

Lexmark divested its inkjet printer business in 2013 and has since boosted its enterprise software business. The company bought Claron Technology Inc for $37 million in January to strengthen its presence in the healthcare market.

Goldman Sachs and Co is the financial adviser to Lexmark for the Kofax deal. Lazard is the financial adviser to Kofax.

© 2017 Thomson/Reuters. All rights reserved.

   
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Lexmark International Inc, known for its printers, said it would buy Kofax Ltd for about $1 billion to double the size of its enterprise software business.
Lexmark, Kofax, merger, software
166
2015-19-24
Tuesday, 24 Mar 2015 05:19 PM
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