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Lexmark International Inc. announced Tuesday it is buying California-based software-maker Kofax Ltd. in a deal valued at $1 billion.
Lexmark CEO Paul Rooke said acquisition would “bring tremendous scale and strength” to the company’s enterprise software business, nearly doubling its holdings in the sector.
“It’s a continuation of our strategy,” Rooke said. “We have been transforming our company and driving it toward management services and software.”
The deal calls for Lexmark to buy all Kofax shares for $11 per share, which Lexmark said it would do using “non-U.S. cash on hand and its existing credit facility programs.” The deal, which has the backing of Kofax’s board of directors and shareholders, is expected to be finalized in the second quarter of 2015.
While Rooke said Kofax complimented Lexmarks Perceptive Software division, he acknowledged that everything from brand names to staffing decisions would be considered during a post-purchase integration process.
“We have the Perceptive Software team, and you have Kofax and we’ll combine them,” Rooke said. “But it’s too early to say [what will result]. Those are are the kind of details we won’t get into until integration.”
Kofax, based in Irvine, California, was launched in 1985 and reported revenue of $297 million in 2014.
Rooke also praised Kofax’s base of 20,000 customers worldwide, as well as it’s focus on customer-facing technology.
“It’s wonderful strategically,” Rooke said, “and it’s a fair price for a great company.”