Lexington-based Lexmark and California software company Kofax have announced a merger agreement that will nearly double the size of Lexmark’s enterprise software business. Lexmark will pay $11 per share for a total of $1 billion.
“The acquisition of Kofax enhances our best-in-class offerings so our customers can capture, manage, access, and act upon their information more efficiently, and extends Lexmark into the high-growth smart process applications market,” said Paul Rooke, Lexmark chairman and chief executive officer.
Kofax’s Board of Directors unanimously recommended the merger agreement. Kofax shareholders, holding approximately 25 percent of the outstanding shares of Kofax, have signed a voting agreement to support the merger.
Upon completion of the acquisition, Lexmark’s enterprise software business will become an approximately $700 million business, competing in the expanding $10 billion content and process management software market.
Founded in 1985, Kofax reported 2014 revenue of $297 million. Kofax has more than 20,000 customers worldwide, including 80 on the Fortune Global 100 list, according to the release.
“We believe joining forces with Lexmark benefits our customers, partners, employees and shareholders and the merger will build on Kofax’s rich history of continuous innovation,” said Reynolds C. Bish, chief executive officer, Kofax.
The acquisition is expected to close in the second quarter of 2015 and is contingent on Kofax shareholder approval, applicable regulatory clearances and other customary closing conditions.
From Lexmark