Lexmark International has agreed to be acquired by Apex Technology and PAG Asia Capital for $3.6 billion or $40.50 per share.
Excluding debt, the transaction is valued at about $2.54 billion.
The deal represents a 16 percent premium to its Tuesday closing price of $34.66. Shares of Lexmark gained as much as 12 percent in after-hours trading on the news.
Upon closing the deal, Lexmark's common stock will no longer be publicly traded on the New York Stock Exchange. The merger is expected to be completed in the second half of 2016.
The company intends to keep its headquarters located in Lexington, Kentucky. Lexmark also said its current chairman and CEO, Paul Rooke, will remain at the helm of the company after the close of the deal.
"This is an exciting transaction that Lexmark's Board of Directors believes is in the best interests of our shareholders following an exhaustive strategic alternatives review process to maximize value," said Rooke in a statement.
The deal will be funded by debt financing as well as equity contributions from the consortium of Apex, PAG and Legend Capital Management.