Lexmark snaps up Kofax in $1bn deal

Lexmark looks to double the size of its enterprise software unit

Printer maker Lexmark yesterday announced it has acquired document-management apps vendor Kofax for $1bn (£670m), in a move that will double the size of its enterprise software business.

Headquartered in Irvine, California, Kofax's revenues were $297m in 2014, for the fiscal year ending 30 June. The company has a network of 850 global partners.

Lexmark claims the deal will double the size of its enterprise software business to about $700m and it will "significantly increase the operating margins of Lexmark's software business".

Paul Rooke, Lexmark chairman and chief executive, said: "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.

"Our customers will have a breadth of hardware and software solutions that connect their information silos and automate their business processes - enabling them to access the most relevant information at the moment they need it to drive business forward."

The acquisition is expected to be completed in the second quarter of 2015, and Goldman Sachs acted as the financial adviser to Lexmark during the deal. Lexmark said the acquisition has been funded through its existing credit facility programmes and "non-US cash on hand".

According to Lexmark, the move is in line with the company's strategy of completing "acquisitions that strengthen and support the growth of Lexmark's solutions capabilities, while returning capital to shareholders".

Reynolds Bish, chief executive of Kofax, said: "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."