Xerox Acquires Lexmark in $1.5 Billion Deal
- Xerox Holdings Corporation finalized its $1.5 billion acquisition of Lexmark International, Inc. today, marking a significant step in its strategic transformation.
- This move strengthens Xerox’s position in the print and managed print services markets. The deal includes Lexmark’s net debt and assumed liabilities.
Strategic Rationale and Leadership
Xerox CEO Steve Bandrowczak expressed his admiration for Lexmark’s strong reputation. He highlighted Lexmark’s robust client and partner base. This acquisition propels their existing collaboration to a new level. Together, they aim to deliver enhanced solutions to clients. This move supports Xerox’s Reinvention strategy. It also paves the way for long-term profitable growth. Allen Waugerman stepped down as Lexmark’s president and CEO. Steve Bandrowczak will remain Xerox’s CEO. The combined executive team will include leaders from both companies. This unified structure will accelerate innovation and scale.
Expanded Reach and Market Position
The newly combined entity will serve over two hundred thousand clients. These clients are spread across over one hundred seventy countries. It will also operate one hundred twenty-five manufacturing and distribution facilities. These facilities are located in sixteen countries. With this acquisition, Xerox now ranks among the top five in every major print segment. It also leads the market in managed print services. This strategic combination strengthens Xerox’s core business. It adds exposure to growing print market segments. It also expands manufacturing capacity and distribution reach.
Financial Outlook and Synergies
Xerox financed the acquisition using cash on hand and debt. The company expects the transaction to boost 2025 adjusted earnings per share. It also anticipates an increase in free cash flow. Furthermore, it projects lower pro forma gross debt leverage. Xerox expects approximately two hundred forty million dollars in transaction-related cost synergies. These synergies should contribute over one dollar per share of additional adjusted EPS accretion. This is anticipated by the end of the second year post-transaction.
