Xerox Holdings Corporation has announced a definitive agreement to acquire Lexmark International, Inc., for $1.5 billion, including liabilities. This strategic move is set to strengthen Xerox’s core printing solutions and expand its managed print services, aligning with the growing demands of hybrid work environments.
Strategic Synergy in the Print Industry.
“This acquisition unites two leaders in the print industry, sharing values and complementary strengths to create a more robust organization,” stated Xerox CEO Steve Bandrowczak. “Together, we will drive sustainable growth and better serve our customers.
Lexmark, headquartered in Lexington, Kentucky, is renowned for its innovative imaging technologies and multifunctional printers. By integrating Lexmark’s portfolio with Xerox’s ConnectKey® technology, the acquisition aims to enhance product capabilities and deliver added value to clients.
Expansion of Market Presence and Capabilities.
The acquisition bolsters Xerox’s presence in the expanding A4 color printer market, diversifies its geographic reach, and strengthens its ability to serve client demands across 170 countries. The combined organization will operate 125 facilities globally and serve over 200,000 customers.
“Joining Xerox allows us to extend our reach and provide enhanced solutions through shared expertise and a strengthened portfolio,” remarked Allen Waugerman, CEO of Lexmark.
Financial and Operational Benefits.
The transaction is anticipated to deliver:
- Improved Financial Metrics: Increased earnings per share and enhanced free cash flow.
- Cost Synergies: $200 million in cost savings within two years.
- Strengthened Balance Sheet: A lower debt ratio while ensuring consistent shareholder returns.
The deal, pending regulatory and shareholder approvals, is expected to close in late 2025. Until then, Xerox and Lexmark will continue to operate independently.
A Vision for Innovation and Sustainability.
For over a century, Xerox has led workplace solutions, evolving from print technology to digital services. Similarly, Lexmark has pushed boundaries in imaging and IoT technologies. Together, the companies aim to redefine the future of the print industry, drive innovation, and support sustainability initiatives while delivering exceptional value to customers
The partnership reflects a strategic alignment to create a robust, integrated platform in printing and managed services, setting the stage for long-term growth and success in diverse markets.
