Xerox Holdings Corporation has completed its acquisition of Lexmark International, Inc. from Ninestar Corporation. The transaction, valued at $1.5 billion, is a significant milestone in the company’s strategic transformation. Steve Bandrowczak, CEO of Xerox, said that the acquisition will drive greater success for clients and partners through a broader portfolio of Print and Managed Print solutions, furthering their Reinvention and solidifying their path toward long-term profitable growth.
Allen Waugerman, who is stepping down as Lexmark president and CEO, said that today is a pivotal moment for Xerox and Lexmark as these two companies combine to shape the future of the printing industry.
Steve Bandrowczak will remain CEO of Xerox with an executive team comprised of Xerox and Lexmark leaders. The unified leadership team is structured to accelerate innovation and scale, leveraging the deep bench of talent from both companies.
The combined organization will serve over 200,000 clients in over 170 countries and operate 125 manufacturing and distribution facilities in 16 countries. With the acquisition of Lexmark, Xerox now stands among the top five in every major print segment and is the market leader in managed print services. This strategic combination strengthens the core business by adding exposure to growing parts of the Print market, manufacturing capacity, and expanding our distribution reach.
The company continues to expect the transaction to be accretive to 2025 adjusted earnings per share and free cash flow and result in a lower level of pro forma gross debt leverage. Additionally, the company expects approximately $240 million of transaction-related cost synergies to contribute over $1/share of additional adjusted EPS accretion by the end of the second year following the transaction close.
Source: Xerox
Source: Print Week
