Xerox Seals the Deal: $1.5B Lexmark Acquisition Marks a Mega-Move in the Print Industry
Xerox Holdings Corporation has completed its $1.5 billion acquisition of Lexmark International from Ninestar Corporation and other investors, heralding the creation of a printing industry powerhouse. This monumental deal, announced on December 23, 2024, unites two industry leaders in a strategic move aimed at fortifying their position in the rapidly evolving hybrid workplace.
The acquisition significantly broadens Xerox’s capabilities, merging Lexmark’s A4 color printer expertise and cloud-enabled imaging technologies with Xerox’s advanced document management solutions. The newly formed organization is set to serve over 200,000 clients in 170 countries, and will operate 125 manufacturing and distribution facilities across 16 countries.
Xerox anticipates the transaction to generate approximately $240 million in cost synergies, contributing over $1 per share of additional adjusted earnings by the end of the second year. To finance the deal, Xerox has cut its annual dividend from $1 to 50 cents per share and projects an improvement in its debt leverage ratio from 6.0x to approximately 4.4x with synergies.
CEO Steve Bandrowczak has expressed that the acquisition positions Xerox “among the top five in every major print segment” and bolsters its market leadership in managed print services. This deal is a strategic response to the declining print volumes and the increasing shift towards digitalization in the workplace.