Lexmark says it will pay $1B for software maker Kofax, expanding its enterprise software unit

Printer maker Lexmark International will buy software developer Kofax Ltd. for about $1 billion.

The deal values Kofax at $11 per share. That's a 47 percent premium to the stock's Tuesday closing price of $7.50.

Lexmark says the purchase nearly doubles the size of its enterprise software business, giving that unit about $700 million in annual revenue. Lexmark, based in Lexington, Kentucky, had $3.7 billion in adjusted revenue in its latest fiscal year, while Kofax of Irvine, California, reported $297 million in revenue.

The companies expect the purchase to close during the second quarter assuming approval from shareholders and regulators. They say Kofax's board supports the sale, and shareholders who own about 25 percent of Kofax stock will vote in favor of the deal as well.