Lexmark International Inc, known for its printers, said it would purchase 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.
Lexmark International Inc. serves both the distributed printing and imaging, and content and process management markets with a focus on business customers. Shares of LXK fell by 1.81% or $-0.75/share to $40.79. In the past year, the shares have traded as low as $37.18 and as high as $51.77. On average, 912765 shares of LXK exchange hands on a given day and today's volume is recorded at 777703.