Xerox and Lexmark have reached an agreement of purchase, with which the first will stay with the second for 1,500 million of dollars. The purchase, which will allow Xerox to recover domestic production of its printers, carrying it out at Lexmark facilities, will close if everything goes as planned during the second half of 2025.
Until then, both companies will keep their names and continue to operate independently. The deal has already been approved by Xerox’s board of directors, pending approval from shareholders of Ninestar, owner of Lexmark. It is unlikely that there will be objections, since its owners had been considering its sale for a few months.
The operation, which involves the union of two of the most prestigious printer brands, will however require approval from the regulatory authorities of the United States and China. When they achieve it, in addition to recovering equipment production on US soil, Xerox hopes to gain market share in Asia and Latin America.
The company will finance the operation through a combination of cash and debt. In addition, its board of directors has approved a reduction of its annual dividend by half: it will go from one dollar per share to 0.50 dollars per share, starting from the dividend they declare in the first quarter of 2025. With this step they hope to have more ability to reduce the debt they have to face in this purchase.
Lexmark was born as a spin-off from IBM in 1991, and went public in 1995. It soon became a brand with a strong presence in the printing business, although in 2016 it went through a major downturn when companies began to move to the digital world.
The situation led to it being purchased by the Chinese printer manufacturer Apex Technology, which today is called Ninestar Corporation, supported by a group of Chinese investors. Despite the acquisition, in which Apex spent $3.6 billion, Lexmark’s board of directors remained based in the United States, and its leadership team is made up of American executives. Currently, Xerox manufactures some of its printer models, although it outsources part of its production to third parties, something it could end by staying with Lexmark.
According to Steve Bandrowczak, CEO of Xeroxthe purchase they have agreed on «will bring together two industry-leading companies with shared values, complementary strengths and a strong commitment to advancing the printing industry to create a stronger organization. By combining our capabilities we will be better positioned to drive long-term profitable growth and serve our customers, expanding our reinvention. Our shared values and vision are expected to optimize operations and drive efficiencies, taking the best of both companies to make it easier to do business with Xerox.«.
He Lexmar President and CEO Allen Waugermanhas highlighted for his part that «Lexmark has a proud history of serving our customers with world-class technology, solutions and services, and we are thrilled to join Xerox and expand our reach with shared talent and a stronger portfolio of offerings. Lexmark and Xerox are two great companies that will be even greater together«.
