The announcement had been expected for several months. Xerox Holdings Corporation announces acquisition of Lexmark International sold by Ninestar Corporation, PAG Asia Capital and Shanghai Shouda Investment Centre. Total value of the transaction: $1.5 billion, including net debt. This major transaction brings together two leading brands in the office printing and document services sector.
Historically focused on office printing, Xerox has for several years been seeking to reposition itself in an environment marked by the digitization of workflows and the hybridization of business environments. The acquisition of Kentucky-based Lexmark will enable Xerox to broaden its offering to include a wider range of document solutions and technologies, including managed print services (MPS) and distributed infrastructures.
200,000 customers, 125 sites and $240 million in savings
According to the official press release, the merged group serves over 200,000 customers in more than 170 countries, and 125 production and distribution sites now operate under the common banner.
Xerox CEO Steve Bandrowczak will continue to lead the group, with a team drawn from both groups.
The organization wishes to "accelerate the pace of technological development and innovation" (According to management, these gains will contribute to a dollar-per-share increase in adjusted EPS by 2026)
Former Lexmark executive Allen Waugerman, who is stepping down from his position, describes the merger as "a major step in the right direction" "a pivotal moment for the sector" .
Xerox/Lexmark in the top 5
"With the acquisition of Lexmark, Xerox now ranks among the top five in all major printing segments and is the market leader in managed print services." says Steve Bandrowczak.
The CEO adds: "This strategic combination strengthens our core business by bringing us into growing segments of the printing market, increasing our production capacity and extending our distribution reach. The transaction accelerates our reinvention strategy by improving our sales mix in developing markets and driving long-term adjusted operating profit growth through structural simplification."
