NEW YORK (TheStreet) -- Shares of Lexmark (LXK) were jumping 13.63% to $39.93 on heavy trading volume early Friday afternoon after the company said it received approval from U.S. regulators to move forward with its $3.6 billion acquisition by a Chinese consortium.
Lexmark announced in April that a Chinese consortium led by ink cartridge chipmaker Apex Technology and investment management firm PAG Asia Capital agreed to purchase the Lexington, KY-based company for $3.6 billion, or $40.50 per share.
The merger is expected to close in the second half of 2016.
Lexmark said in an SEC filing today that the Committee on Foreign Investment in the U.S. (CFIUS) approved the deal, but is requiring the companies to enter into a national security agreement with the Department of Defense and Department of Homeland Security.
The buyout is still subject to approval by China's State Administration of Foreign Exchange.
Lexmark is a manufacturer and supplier of printing, imaging and device management solutions and other services.
About 5.85 million of the company's shares have changed hands so far today vs. its average volume of 621,743 shares per day.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings team rates Lexmark as a Hold with a ratings score of C. The company's strengths can be seen in multiple areas, such as its solid stock price performance, good cash flow from operations and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, the team finds that the company's return on equity has been disappointing.
You can view the full analysis from the report here: LXK