"Kofax accelerates Lexmark's development of industry-specific solutions while also immediately expanding our reach into the midmarket, where there is increasing demand for technology to better manage the growing amount of unstructured information and improve customer engagement," said Paul Rooke, Lexmark chairman and CEO.
Under the agreement, printer behemoth 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.
Lexmark will acquire all of the outstanding shares of Kofax for $11.00 per share in cash for a total enterprise value of approximately $1 billion.
Kofax is headquartered in Irvine, California and reported 2014 revenue of $297 million.
"Our market-leading ability to simplify and transform the First Mile of customer engagement is a strong complement to Perceptive Software's strength in managing information across silos. As a result, we're excited about the future and working together to realize the full potential of this opportunity to the benefit of all stakeholders," said Reynolds Bish, CEO of 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.
So far this year, Kofax has made significant strides itself, recently announcing in March that it acquired Aia Holding BV, a customer communications management company based in The Netherlands, for $19.5 million in cash.