Xerox Holdings Corporation has announced an agreement to acquire Lexmark International, Inc. from Ninestar Corporation and its partners, in a deal valued at $1.5 billion, including assumed liabilities. This strategic move is aimed at enhancing Xerox’s core print offerings and expanding its global presence in the print and managed print services sectors, particularly in response to the growing needs of the hybrid workplace.
Steve Bandrowczak, CEO of Xerox, expressed his enthusiasm, stating, “By combining our capabilities, we will be better positioned to drive long-term profitable growth and serve our clients, furthering our Reinvention.” Lexmark, based in Lexington, Kentucky, is known for its innovative imaging solutions, including a leading range of printers and multifunction devices. Xerox plans to integrate these solutions with its own ConnectKey® technology, aiming to deliver a more robust portfolio for clients globally.
The acquisition will allow Xerox to extend its reach in the rapidly growing A4 color market and diversify its presence across multiple regions, especially in the Asia-Pacific market. With this expansion, Xerox and Lexmark will serve more than 200,000 clients across 170 countries, supported by 125 manufacturing and distribution facilities.
Allen Waugerman, CEO of Lexmark, highlighted the shared commitment to advancing print technology: “Lexmark has a proud history of serving our customers with world-class technology, solutions and services, and we are excited to join Xerox and expand our reach with shared talent and a stronger portfolio of offerings.”
The transaction is expected to bring significant financial benefits, including enhanced cash flow and a reduction in Xerox’s debt leverage ratio. Xerox also anticipates cost synergies exceeding $200 million over the next two years, further improving its competitive positioning. The deal is expected to close in the second half of 2025, pending regulatory approvals.
As part of the transaction, Xerox will reduce its annual dividend from $1 per share to 50 cents per share, beginning in 2025. This adjustment aims to allocate more resources towards debt reduction, while still offering shareholders a strong yield.