MEMPHIS, Dec. 30 (UPI) -- Memphis, Tenn., based FedEx said Tuesday it has agreed to buy Kinko's, the business services retailer, for $2.4 billion in cash, CNN reported.

FedEx, an international package delivery service, will buy Kinko's from Clayton, Dubilier & Rice, a global private equity investment firm, which owns about 75 percent of outstanding Kinko's shares, all of which are privately held.

"The FedEx (NYSE:FDX) and Kinko's combination will substantially increase our retail presence worldwide and will enable both companies to take advantage of growth opportunities in the fast-moving digital economy," said Frederick W. Smith, CEO of FedEx.

FedEx said the deal is expected to close before April.

Kinko's operates about 1,200 stores in about 110 countries, with an estimated annual revenue of about $2 billion.

FedEx, which operates in 215 countries, said it "plans to significantly expand" the global reach of Kinko's stores.

Earlier this year, FedEx competitor United Postal Service bought former Kinko's competitor Mail Boxes Etc. and re-named about 3,000 Mail Boxes Etc. stores "UPS Stores."