Xerox Holdings has reached an agreement to acquire Lexmark International from Ninestar, PAG Asia Capital and Shanghai Shouda Investment Centre in a deal valued at $1,5-billion, including assumed liabilities.
The acquisition will enhance Xerox’s core print portfolio and help expand its global presence in print and managed print services, positioning the company to better meet the evolving needs of clients in the hybrid workplace.
“Our acquisition of Lexmark combines two industry-leading companies with shared values, complementary strengths, and a commitment to advancing the print industry,” says Steve Bandrowczak, CEO of Xerox. “By integrating our capabilities, we will be in a stronger position to drive long-term, profitable growth and continue our Reinvention strategy, offering greater value to our clients.”
The acquisition will integrate Lexmark’s solutions with Xerox’s ConnectKey technology and advanced Print and Digital Services, creating an expanded portfolio that enhances Xerox’s value proposition to both clients and partners. It will also strengthen Xerox’s ability to serve the large, growing A4 colour print market, expanding its distribution footprint, particularly in the APAC region.
Following the transaction, the combined entity will serve over 200 000 clients across 170 countries, with 125 manufacturing and distribution facilities in 16 countries.
Lexmark and Xerox together hold a top five global share in the entry, mid, and production print markets and are significant players in the managed print services sector.
“Lexmark has a proud legacy of delivering world-class technology, solutions, and services. We are excited to join forces with Xerox, leveraging shared talent and a broader portfolio of offerings to better serve our customers,” says Allen Waugerman, Lexmark’s president and CEO. “Together, Lexmark and Xerox will become an even stronger company.”
“Our shared values and vision will streamline operations, drive efficiencies, and make it easier for clients to work with Xerox,” Bandrowczak adds.
Under the terms of the agreement, Xerox will acquire Lexmark for $1.5 billion, which includes net debt and other assumed liabilities. Xerox plans to finance the deal with a combination of cash on hand and committed debt financing.
In light of this financing, Xerox’s Board of Directors has approved a change in its dividend policy, reducing the annual dividend from $1 per share to 50 cents per share, effective for the first quarter of 2025. This adjustment will provide additional capacity to reduce debt while continuing to offer shareholders an above-market yield.
The transaction has been unanimously approved by Xerox’s Board of Directors and is subject to regulatory approvals, Ninestar’s shareholder approval, and other customary closing conditions. The deal is expected to close in the second half of 2025. Until then, Xerox and Lexmark will continue to operate independently.