Lexmark International, an American corporation that manufactures laser printers, announced that it would buy software developer Kofax for $1 billion to boost its software business.

According to Lexmark, the deal would help its Perceptive Software business to achieve its revenue target of $500 million in 2016. It would also add about 10 cents per share to the company's adjusted profit in 2015.

This is the deal made by Lexmark in recent years. The deal has changed the company from a primarily printer maker to a printing, imaging and software company.

Kofax provides data services to financial, insurance and health care companies such as Citigroup, Metlife and Humana. The financial advisor to Lexmark and Kofax are Goldman Sachs and Lazard respectively.

Lexmark paid $280 million for business software company Perceptive Software in 2010. In 2012, it acquired BDGB Enterprises for $148 million.

The same year, Lexmark announced that it would exit its inkjet business due to decline in sales. In 2013, it sold its remaining inkjet assets to Japanese technology company Funai. In 2014, Lexmark paid $251 million for business process automation company ReadSoft.

Kentucky-based Lexmark reported $3.7 billion in adjusted revenue in its latest fiscal year, while Kofax reported $297 million in revenue. Shares of Kofax jumped $3.40, or 45.3 percent, to $10.90 in after-hours trading while shares of Lexmark rose $2.36, or 5.8 percent, to $43.15.

Lexmark and Kofax anticipate the purchase to close during the second quarter. Kofax's board supports the sale, and shareholders who own about 25% of Kofax stock are expected to vote in favor of the deal as well.

Meanwhile, Hewlett-Packard (HP) has planned to separate its computer and printer businesses from its corporate hardware and services operations this year.