NEWS EXTRA
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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 l 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. Once combined, 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 l Financial benefits: 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. Unanimous approval Under the terms of the agreement, Xerox will acquire Lexmark for $1.5 billion (£1.21 billion), inclusive of net debt and other assumed liabilities. Xerox expects to finance the acquisition with a combination of cash on hand and committed debt financing. The Xerox board of directors unanimously approved the transaction. The deal is subject to regulatory approvals, approval of Ninestar’s shareholders, and other customary closing conditions. It is expected to close in the second half of 2025. Until then, Xerox and Lexmark will maintain their current operations and operate independently.
Allen Waugerman president and ceo
lexmark.com
“
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.
”
printinthechannel.co.uk
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