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updated: 2/24/2010 11:09 AM

R.R. Donnelley to buy Bowne for $481 million

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R.R. Donnelley & Sons Co., the Chicago-based printing company, is buying Bowne & Co., the New York-based printer of financial documents, for $481 million in cash to expand the number of services it offers its clients.

The deal is expected to close in the second half, the companies said today in a statement. The acquisition will add to R.R. Donnelley's earnings in the year after the deal is completed, according to the statement.

The deal values Bowne at $11.50 a share, a 65 percent premium to the company's closing share price today of $6.97 in New York Stock Exchange composite trading. R.R. Donnelley rose 17 cents to $20.51 on the Nasdaq Stock Market.

Bowne had revenue of $675 million last year, according to the statement.