Kofax Surges On $1 Bln. Merger Deal With Lexmark

(RTTNews) - Printer maker and enterprise services provider Lexmark International Inc (LXK) on Tuesday said it has agreed to buy software maker Kofax Ltd (KFX, KFX.L) for $11.00 per share in cash for an enterprise value of about $1 billion.

Lexmark said the addition of Kofax immediately enhances its enterprise content management and business process management offerings.

The deal is expected to close in the second quarter of 2015 and is contingent on Kofax shareholder approval and customary closing conditions.

Following the announcement, Kofax shares surged 35.7% at $10.18 on the Nasdaq, and Lexmark shares jumped 4.54% at $42.64.

Founded in 1985 and based in Irvine, California, Kofax reported 2014 revenue of $297 million. Kofax has over 20,000 customers and operates in all regions of the world.

Lexmark said the deal would nearly double the size of its enterprise software business to about $700 million, and would also spur growth and boost the operating margins of its software business.

Lexmark also said the deal would result in an enhanced, more efficient balance sheet benefiting from the deployment of available overseas cash and existing balance sheet capacity.

Kofax's board has unanimously supported the deal. Shareholders, holding about 25 percent of the outstanding shares of Kofax, have signed a voting agreement in favor of the deal.

Goldman, Sachs and Co is serving as financial advisor to Lexmark for the deal, and Lazard as financial advisor to Kofax.