- The acquisition of Lexmark will enhance Xerox’s strength and expand its influence in the enterprise market
- Lexmark was IBM’s former printer division, which, like its PCs and servers, was sold to Chinese investors
- Xerox faces huge competition from HP, Epson and Canon
Xerox announces agreement to acquire Lexmark for $1.5 billion, creating a new global market printer Huge.
The deal will allow Xerox to expand its printing portfolio and expand its global footprint and services, the company said.
Xerox CEO Steve Bandrowczak said: “Our acquisition of Lexmark will bring together two industry-leading companies with shared values, complementary strengths and a strong commitment to advancing the printing industry, creating a A stronger organization. “By combining our capabilities, we will be better able to drive long-term profitable growth and serve our customers, further advancing our reinvention. “
Strengthening Xerox’s position
Founded in 1991 as a spin-off from IBM’s Printer Division, Lexmark has been providing imaging solutions and technologies for printers and multifunction devices for more than three decades. The company, still headquartered in Lexington, Ky., was acquired by Chinese investors in 2016 but is now gearing up for a new owner.
The integration of Lexmark’s imaging technology with Xerox’s ConnectKey technology and advanced printing and digital services is designed to create a comprehensive product portfolio. This move will also consolidate Xerox’s position in the A4 color market and increase its influence in regions such as the Asia-Pacific region.
Lexmark and Xerox jointly hold the top five global shares in the entry-level, mid-range and production printing markets and play an important role in the managed printing services industry.
The combined organization will serve more than 200,000 customers in 170 countries supported by 125 manufacturing and distribution facilities in 16 countries, but it faces stiff competition from established players such as HP, Epson and Canon.
“Lexmark has a proud history of delivering world-class technologies, solutions and services to our customers, and we are excited to join Xerox and build upon our shared talent and stronger products,” said Lexmark President and CEO Allen Waugerman. “Lexmark and Xerox are two great companies that will be even greater together.”
The transaction is expected to close in the second half of 2025, subject to regulatory and shareholder approvals.