Xerox acquires Lexmark in $1.5B global print deal

Xerox Holdings Corporation has completed the acquisition of Lexmark International, Inc. for $1.5 billion, including net debt and assumed liabilities. The deal, which sees Xerox acquire Lexmark from Ninestar Corporation, PAG Asia Capital, and Shanghai Shouda Investment Centre, marks a strategic consolidation in the global printing industry.

With this acquisition, Xerox aims to enhance its position in managed print services and expand its presence across global markets. The combined entity will serve over 200,000 clients in more than 170 countries and operate 125 manufacturing and distribution facilities across 16 countries. Steve Bandrowczak will continue as CEO of the unified company, supported by a leadership team drawn from both Xerox and Lexmark.

Lexmark CEO Allen Waugerman will step down following the transaction, calling the merger a pivotal moment for both organizations. The integration is expected to accelerate Xerox’s ongoing strategic transformation, known as the “Reinvention,” and broaden its product and service offerings.

Xerox plans to realize approximately $240 million in cost synergies from the merger, contributing over $1 per share in additional adjusted EPS by the end of the second year post-transaction. The company financed the acquisition using a mix of available cash and debt and expects the transaction to be accretive to 2025 adjusted earnings per share and free cash flow.

According to Xerox, the merger will strengthen its core business by expanding manufacturing capabilities, deepening distribution networks, and enhancing its presence in growing segments of the print market. The company also anticipates improvements in adjusted operating profit due to structural simplification and synergy gains.

Advisory support for the transaction came from Jefferies, Citi, Morgan Stanley, and Strait Capital, while legal counsel was provided by Ropes & Gray LLP, Willkie Farr & Gallagher LLP, and others.

The deal positions Xerox as a top-five player across all major print segments, highlighting continued consolidation in an industry adjusting to hybrid work environments and evolving enterprise needs. 

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