PRINTITRESELLER.UK 29 By combining Lexmark’s solutions with Xerox ConnectKey technology and advanced print and digital services, the acquisition will create a superior offering portfolio and underscores Xerox’s commitment to increasing value for clients and partners. Xerox expects to have a more comprehensive portfolio of products to enhance its offerings and reinforce its value proposition to clients, enabling growth across the portfolio of equipment and MPS, as well as incremental opportunities to increase penetration of its advanced digital services and IT solutions. In particular, the transaction will strengthen its ability to serve clients in the A4 colour market and diversify its distribution and geographic presence, including the APAC region. The transaction is expected to be immediately accretive to earnings per share and free cash flow. Xerox expects this transaction to accelerate the realisation of its reinvention financial targets of revenue stabilisation and double-digit adjusted operating income through an improved competitive position and exposure to faster-growing segments within print, as well as more than $200 million of identified cost synergies to be realised within two years of transaction close. www.xerox.com, www.lexmark.com entry, mid and production print markets and are key players in the large, stable managed print services market. Xerox Chief Executive Officer Steve Bandrowczak said: “Our acquisition of Lexmark will bring together two industry-leading companies with shared values, complementary strengths, and a deep commitment to advancing the print industry to create one stronger organisation. By combining our capabilities, we will be better positioned to drive long-term profitable growth and serve our clients, furthering our reinvention.” An historic transaction In a blog post, Lexmark President and Chief Executive Officer Allen Waugerman referred to the move as an historic transaction that reshapes the future of the printing industry. “This is a transaction joining two industry icons, and together as one, we’ll be even greater. We’re combining our expertise to accelerate innovation and deliver faster development cycles, more advanced features, and a world-class printing experience. We’re creating a comprehensive leading portfolio unique in the industry. Think greater reach, enhanced offerings, and unparalleled value for our customers,” he said. “Our shared values and vision are expected to streamline operations and drive efficiencies, taking the best of both companies to make it easier to do business with Xerox,” Bandrowczak added. Growth opportunities Lexmark is a leader in the large, growing A4 colour print and supplies market and has an opportunity to expand its OEM platform within the A3 equipment category. For several years, the print sector has seen ongoing consolidation and acquisitions continue apace, however this move is undoubtedly the biggest disruptor to the market since the HP/Samsung deal in 2017 which was valued at $1.05 billion. PrintIT Reseller requested an interview following the announcement, however both companies were unable to provide additional comments beyond the details included in the official communications at this stage. Xerox will acquire Lexmark, a longstanding partner and supplier from its current Chinese owners Ninestar Corporation, PAG Asia Capital, and Shanghai Shouda Investment Centre. In a joint news release, the company said the acquisition will strengthen its core print portfolio and build a broader global print and managed print services business better suited to meet the evolving needs of clients in the hybrid workplace. Strategic fit Xerox and Lexmark have complementary sets of operations, offering strengths and end-market exposures. Combined, the companies form a vertically integrated manufacturer, distributor and provider of print equipment and MPS, covering all geographies and client types with a well-rounded portfolio of print and print services offerings. Together, Lexmark and Xerox have a top five global share in each of the NEWS FEATURE Steve Bandrowczak Xerox to acquire Lexmark On December 23, Xerox announced it had agreed to acquire Lexmark for $1.5 billion. The transaction between the two print industry icons is expected to close in the second half of 2025. The combined company is expected to serve more than 200,000 clients in 170 countries and have a market share among the top five firms globally in various print segments Allen Waugerman By combining Lexmark’s solutions with Xerox ConnectKey technology and advanced print and digital services, the acquisition will create a superior offering portfolio and underscores Xerox’s commitment to increasing value for clients and partners
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