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Lexmark to acquire Kofax Limited

Lexmark will nearly double the size of its enterprise software business

LEXINGTON, Ky. (March 24, 2015) — Lexmark and Kofax Limited, of Irvine, Calif., today announced that the two companies have entered into a merger agreement in which Lexmark will acquire Kofax. Under the terms of the merger, Lexmark will acquire all of the outstanding shares of Kofax for $11 per share in cash for a total enterprise value of approximately $1 billion, net of cash acquired.

lexmarkLexmark will fund the acquisition with its non-U.S. cash on hand and its existing credit facility programs. Kofax’s Board of Directors has unanimously recommended in favor of the merger agreement. Kofax shareholders, holding approximately 25 percent of the outstanding shares of Kofax, have signed a voting agreement committing to support the merger.

Upon successful completion of the acquisition, Lexmark will nearly double the size of its enterprise software business to an approximately $700 million business competing in the expanding $10 billion content and process management software market. This market is expected to have a compounded annual growth rate of approximately 10 percent. In addition to the significant increase in scale, Kofax will help accelerate the growth and significantly increase the operating margins of Lexmark’s software business.

Kofax, which reported 2014 revenue of $297 million, has more than 20,000 customers worldwide.

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.