After almost a decade, printer-maker Lexmark is returning to US ownership from China. Xerox is set to acquire it with $1.5 billion, boosting its global market share and combatting challenges in the digital era.
Global office equipment manufacturer Xerox has announced plans to acquire Lexmark International, a Chinese-owned printer and software maker, in a $1.5 billion deal to strengthen its core business.
The acquisition, set to return Lexmark to US ownership, will be made from its current Chinese owners, including Ninestar Corp, PAG Asia Capital, and Shanghai Shouda Investment Centre. Lexmark, initially formed from IBM in 1991, was sold to Chinese investors for $3.6 billion in 2016.
The transaction, which includes Lexmark’s debt, is expected to close in the second half of 2025. Xerox will finance the deal using a combination of cash and debt financing. The merged entity is expected to serve over 200,000 clients across 170 countries, placing Xerox among the top five global firms in various print segments.
According to CNBC, the deal comes as Xerox faces declining revenues, having seen a drop for five consecutive quarters due to reduced demand for printers in the digital era. With increased competition from companies like HP and Canon, the acquisition will provide Xerox with the scale needed to compete more effectively.
Furthermore, the company aims to expand its presence in the Asia-Pacific region and strengthen its position in the A4 market, which includes smaller printers and copiers commonly used in offices and homes.
To support this acquisition and reduce debt, Xerox will cut its annual dividend to 50 cents per share from $1, starting with the first-quarter dividend in 2025.
