Xerox announced today that it is acquiring Lexmark for $1.5 billion, or about €1.4 billion. With this acquisition, Xerox nearly doubles in size.
Xerox could use Lexmark as a strategic brand to strengthen its position in the color printing market. Lexmark has a strong position in this market, especially in A4-size printers. According to Xerox’s statement, there are significant growth opportunities here as the market for A4 color printing continues to grow. In addition, the acquisition offers opportunities for further expansion in Asia.
The combined organization will serve over 200,000 customers in 170 countries and has 125 manufacturing and distribution centers in 16 countries. “Our acquisition of Lexmark will bring together two industry-leading companies with shared values, complementary strengths, and a deep commitment to advancing the print industry to create one stronger organization,” responded Xerox CEO Steve Bandrowczak.
Combining operations will also create an integrated brand for manufacturing, distribution and printing delivery. In addition, they expect to achieve more profitable growth together.
Owners of Lexmark
Lexmark has been a Xerox supplier for many years, but the company has had multiple owners in recent years. For example, Chinese investors previously acquired Lexmark for $3.6 billion, and later by well-known IT investment firm Thoma Bravo. With Xerox as the new owner, Lexmark will now be owned by a fully active company within the printing industry.
Xerox will finance the acquisition through a combination of cash and loans. Subject to approval by the relevant authorities, the transaction is expected to be completed in the second half of 2025.