Xerox to Acquire Lexmark in $1.5 Billion Deal

Xerox Holdings Corporation has announced an agreement to acquire Lexmark International in a transaction valued at $1.5 billion, including liabilities. Xerox’s printing solutions is looking forward to expanding its managed print services, addressing the needs of hybrid work environments. 

Lexmark is based in Lexington, Kentucky. It is known for its imaging technologies and multifunctional printers. The integration of Lexmark’s offerings with Xerox’s ConnectKey technology and managed print services is expected to enhance product capabilities and service delivery for clients.  

Impact on Xerox’s Market Position
 
The acquisition is set to change Xerox’s position in the A4 colour printer market and expand its geographical reach. Combined, Xerox and Lexmark will operate in 170 countries through 125 facilities, they might reach approximately 200,000 customers globally.  

Strategic Alignment and Business Goal

The transaction aligns the two companies to create a unified platform for printing and managed services. This integration is expected to expand their product and service portfolios, support the adoption of digital solutions, and address the needs of diverse markets.  

Financial Implication
 
The deal is projected to enhance earnings per share, increase free cash flow, and achieve $200 million in cost savings within two years. Xerox also plans to reduce its debt ratio while maintaining shareholder returns and financial discipline.  

Regulatory and Operational Timeline
  
The transaction, pending regulatory and shareholder approvals, is expected to close in the second half of 2025. Until the completion, Xerox and Lexmark will continue to operate independently.  

Future Goals
 
Xerox and Lexmark reportedly have innovation experience in workplace solutions and imaging technologies. The combined entities aim to advance their foothold in the future of the print industry by driving innovation, supporting digital transformation, and addressing sustainability goals.