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Tuesday, March 24, 2015

Lexmark to purchase Kofax for about $1 billion to boost software business, (NYSE: LXK)

Lexmark International Inc, known for its printers, said it would purchase Kofax Ltd in an about $1 billion deal that would double the size of its enterprise software business.Kofax shares were up 45.5 percent at $10.91 in extended trading on Tuesday, just shy of Lexmark's $11 per share cash offer. Lexmark shares rose 8 percent.PC and printer makers have struggled in the recent past as companies reduced printing to cut costs and consumers shifted to mobile devices from PCs.Hewlett-Packard Co plans to separate its computer and printer businesses from its corporate hardware and services operations this year.

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 805674.