Xerox to Acquire Lexmark from Ninestar

Xerox to Acquire Lexmark from Ninestar

Xerox Holdings Corporation has announced an agreement to acquire Lexmark International, Inc., from Ninestar Corporation, PAG Asia Capital, and Shanghai Shouda Investment Centre. The $1.5 billion transaction, which includes assumed liabilities, is expected to close in the second half of 2025. The acquisition is set to expand Xerox’s capabilities in printing and managed print services (MPS) while strengthening its global footprint.

This acquisition aligns with Xerox’s strategy to strengthen its position in the A4 color print market and enhance its portfolio with Lexmark’s advanced imaging technologies. Combining Lexmark’s offerings with Xerox’s existing solutions, including ConnectKey® technology, the deal aims to create a more comprehensive and competitive product lineup for businesses adapting to the demands of a hybrid workplace.

The integration will bolster Xerox’s operations in key markets, including the Asia-Pacific region, and provide opportunities to diversify its distribution channels. Together, Xerox and Lexmark will serve over 200,000 clients across 170 countries, leveraging 125 manufacturing and distribution facilities worldwide.

From a financial perspective, the acquisition is expected to immediately boost Xerox’s earnings per share and free cash flow. Additionally, the company anticipates achieving over $200 million in cost synergies within two years of the transaction’s closure. The strengthened balance sheet will enable Xerox to accelerate its revenue stabilization goals and improve operating income.

Under the terms of the agreement, Xerox will finance the acquisition through a combination of cash on hand and committed debt financing. To prioritize debt reduction, the company’s Board of Directors has approved a reduction in the annual dividend from $1 to $0.50 per share, effective in early 2025.

The transaction is subject to regulatory and shareholder approvals, with both companies maintaining independent operations until the deal is finalized. Xerox has stated its confidence in the acquisition’s potential to deliver long-term value and strengthen its competitive edge in the evolving print industry.

Related:

• Xerox Toner Faces More than Rumor Challenges
• Xerox Sued for Misleading Investors Amid Financial Decline
• Ninestar Records Robust Profit Improvement in Q3 2024
• Lexmark Introduces 9-series A3 Printer

Comment:

Please leave your comment below about the news: Xerox to Acquire Lexmark from Ninestar.