Lexmark to buy Kofax for about $1 billion to boost software business

(Reuters) – Lexmark World Inc, identified for its printers, said it could buy Kofax Ltd for approximately $ 1 billion to double the dimensions of its endeavor software business.

Lexmark’s $ 11 per share cash supply represents a Forty Six.7 percent top rate to Kofax inventory’s Tuesday shut of $ 7.50 on the Nasdaq.

Kofax shares were up 35.7 p.c at $ 10.18 in extended trading. Lexmark shares rose just about 7 %.

Lexmark mentioned it expects the deal to “significantly” extend operating margins in its software business, which might now be price about $ 700 million.

Printer makers have struggled in the contemporary past as companies reduced printing to cut prices and shoppers shifted to cellular devices from PCs.

Lexmark divested its inkjet printer industry in 2013 and has on the grounds that boosted its enterprise instrument trade. The Company sold Claron Know-how Inc for $ 37 million in January to reinforce its presence within the healthcare market.

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

(Reporting by Anya George Tharakan and Devika Krishna Kumar in Bengaluru; Enhancing through Joyjeet Das)

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