Xerox to acquire printer maker Lexmark for $1.5 billion
Lexmark International from a consortium of Asian investors in a deal valued at $1.5 billion.
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The transaction includes debt and other liabilities that Xerox will assume from current owners Ninestar, PAG Asia Capital and Shanghai Shouda Investment Centre. Xerox will cut its annual dividend to 50 cents a share from $1 to help finance the takeover, according to a company statement Monday. The deal is expected to close in the second half of 2025, pending approval from US and Chinese regulators.
Acquiring Lexmark will bring manufacturing in-house and improve exposure to markets in Asia and Latin America, chief executive officer Steven Bandrowczak said on a call with analysts Monday.
Lexmark, spun off in 1991 by International Business Machines, is already a partner and supplier to Xerox. Over $200 million in annual cost savings are expected for the combined company by reducing sales and marketing expenses or from real estate consolidation. Xerox will also be able to save money by pooling procurement and buying toner in bulk.
The deal «could aid long-term profitability and shore up cash flow should it deliver on its cost synergies,» said Woo Jin Ho, an analyst at Bloomberg Intelligence.
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