Nasdaq-listed Xerox is acquiring Lexmark from a Chinese consortium for $1.5 billion.
The acquisition, from printer company Ninestar Corporation, PAG Asia Capital, and Shanghai Shouda Investment Centre, will strengthen the Xerox core print portfolio and build a broader global print and managed print services business, said Xerox.
The Chinese consortium acquired Lexington, Kentucky-headquartered Lexmark eight years ago in a $3.6 billion deal.
“Our acquisition will bring together two industry-leading companies with shared values, complementary strengths, and a deep commitment to advancing the print industry to create one stronger organisation,” said Steve Bandrowczak, chief executive officer at Xerox. “By combining our capabilities, we will be better positioned to drive long-term profitable growth and serve our clients.”
The deal will allow Xerox to diversify its distribution and geographic presence, including the APAC region. The new organisation will serve more than 200,000 clients in 170 countries, with 125 manufacturing and distribution facilities in 16 countries. Combined, Lexmark and Xerox are said to have a top five global share in each of the entry, mid and production print markets, and are key players in the large, stable managed print services market.
“Lexmark has a proud history of serving our customers with world-class technology, solutions and services, and we are excited to join Xerox and expand our reach with shared talent and a stronger portfolio of offerings,” said Allen Waugerman, Lexmark president and chief executive officer. “Our shared values and vision are expected to streamline operations and drive efficiencies, taking the best of both companies to make it easier to do business with Xerox.”
Xerox said it expects the deal to “accelerate” its financial targets of “revenue stabilisation” and “double-digit adjusted operating income”, through an improved competitive position and exposure to faster growing segments within print, as well as more than $200m of identified cost synergies to be realised “within two years” of the transaction being closed.
The deal is expected to close in the second half of 2025. Until then, both Xerox and Lexmark will maintain their current operations and operate independently.
