Xerox has completed its acquisition of Lexmark, a laser printer manufacturer, in a deal valued at $1.5 billion. The purchase marks a significant milestone for Xerox, following the buyout of Lexmark from a consortium of Chinese investors. This strategic move is part of Xerox’s broader reinvention strategy, aimed at transforming its business model and enhancing its digital and print services.
The acquisition of Lexmark not only expands Xerox’s portfolio but also strengthens its position in the printing industry. By combining forces, the two companies are set to deliver a broader range of print and managed print solutions to clients worldwide. This move underscores Xerox’s commitment to long-term growth and innovation in an evolving business landscape.
Steve Bandrowczak, the CEO of Xerox, expressed admiration for Lexmark’s reputation in print and managed print services, as well as its global presence. This acquisition paves the way for enhanced collaboration between the two companies, driving success for their clients and partners through a more diversified product offering and service capabilities.
Allen Waugerman, the outgoing president and CEO of Lexmark, highlighted the significance of this merger in shaping the future of the printing industry. With a unified leadership team comprising executives from both Xerox and Lexmark, the combined organization is poised to accelerate innovation and scale, leveraging the talent and resources of both companies.
Following the acquisition, Xerox now ranks among the top players in every major print segment and leads in managed print services. This strategic move not only expands Xerox’s market reach but also enhances its manufacturing capacity and distribution network. By uniting their complementary strengths, Xerox and Lexmark are better equipped to deliver end-to-end solutions tailored to the diverse needs of clients across industries and geographies.
The acquisition was financed through a mix of cash reserves and debt financing. Xerox expects the transaction to boost its earnings per share and free cash flow in 2025, leading to a lower level of pro forma gross debt leverage. Furthermore, cost synergies resulting from the merger are projected to drive additional earnings per share accretion in the coming years.
With the completion of the Lexmark acquisition, Xerox is well-positioned to capitalize on growth opportunities in the dynamic printing market. By combining their expertise and resources, Xerox and Lexmark are set to redefine the landscape of the printing industry and deliver innovative solutions that meet the evolving needs of clients worldwide.
As Xerox continues its strategic transformation, the acquisition of Lexmark represents a significant step forward in the company’s journey towards sustainable growth and market leadership. This move underscores Xerox’s commitment to driving innovation and delivering value to its stakeholders in a rapidly changing business environment.
📰 Related Articles
- Xerox Acquires Lexmark for $1.5 Billion, Expands Market Reach
- Xerox Acquires Lexmark for $1.5 Billion to Expand Portfolio
- Xerox to Acquire Lexmark for $1.5 Billion, Industry Consolidation
- Xerox Completes $1.5B Acquisition of Lexmark, Boosts Print Business
- Xerox to Acquire Lexmark in $1.5B Deal, Expanding Portfolio