Xerox has announced the acquisition of Lexmark International from Chinese owners for $1.5 billion, aiming to expand its foothold in Asia and enhance competitiveness in the evolving print industry.
The deal, involving Ninestar, PAG Asia Capital, and Shanghai Shouda Investment Centre, returns Lexmark to U.S. ownership after its 2016 sale to Chinese investors for $3.6 billion.
Struggling with revenue declines over five quarters, Xerox seeks to leverage Lexmark’s strengths, particularly in the growing A4 color printing segment. The acquisition will position the combined entity among the top five global players, serving over 200,000 clients across 170 countries.
The merger is expected to yield $200 million in annual cost savings and provide immediate profit benefits by streamlining marketing, real estate, and operational costs.
Xerox plans to finance the acquisition through cash and debt, reducing its dividend to 50 cents per share to support the transaction, which is anticipated to close in the second half of 2025 pending regulatory approvals.
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