Xerox Holdings Corporation has announced a definitive agreement to acquire Lexmark International, Inc., for $1.5 billion, including liabilities. This deal aims to enhance Xerox’s core printing solutions and expand its managed print services business, catering to the evolving needs of hybrid work environments.
“This acquisition unites two leaders in the print industry, sharing values and complementary strengths to create a more robust organization,” said Xerox CEO Steve Bandrowczak. “Together, we will drive sustainable growth and better serve our customers.”
Lexmark, headquartered in Lexington, Kentucky, specializes in innovative imaging technologies and multifunctional printers. Integrating Lexmark’s offerings with Xerox’s ConnectKey® technology and print services will broaden product capabilities and create added value for clients.
The acquisition will bolster Xerox’s presence in the growing A4 color printer market, diversify its geographic footprint, and strengthen its ability to meet client demands across 170 countries. Combined, Xerox and Lexmark will operate 125 facilities globally, serving over 200,000 customers.
“Joining Xerox allows us to extend our reach and provide enhanced solutions through shared expertise and a strengthened portfolio,” said Allen Waugerman, CEO of Lexmark.
The transaction strategically aligns the combined entities to create a robust, integrated platform that expands their offerings in printing and managed services across diverse markets. By enhancing product and service portfolios, the partnership aims to drive innovation, support the broader adoption of advanced digital solutions, and deliver exceptional value to customers.
From a financial perspective, the deal is expected to yield significant benefits, including improved earnings per share, enhanced free cash flow, and $200 million in cost savings within two years. Additionally, Xerox plans to strengthen its balance sheet by substantially reducing its debt ratio while maintaining financial discipline and ensuring consistent shareholder returns. The transaction, subject to regulatory and shareholder approvals, is expected to close in the latter half of 2025. Until then, Xerox and Lexmark will continue operating independently.
For over a century, Xerox has pioneered workplace solutions, evolving from print technology to digitally driven services. Similarly, Lexmark has redefined imaging and IoT technologies to empower businesses globally. Together, the two companies aim to shape the future of the print industry while advancing innovation and sustainability.
