- Lexmark acquisition will strengthen Xerox as it seeks to improve its presence in the enterprise market
- Lexmark was IBM’s former printer division and, like its PCs and servers, was sold to Chinese investors.
- Xerox faces huge competition from HP, Epson and Canon
Xerox has announced an agreement to acquire Lexmark in a deal valued at $1.5 billion that will create a new global printer giant.
The company says the deal will allow Xerox to expand its printing portfolio, as well as expand its global presence and service offering.
“Our acquisition of Lexmark will bring together two industry-leading companies with shared values, complementary strengths and a deep commitment to advancing the printing industry to create a stronger organization,” said Steve Bandrowczak, CEO of Xerox. “By combining our capabilities, we will be better positioned to drive long-term profitable growth and serve our customers, driving our reinvention.”
Strengthening Xerox’s position
Lexmark, founded in 1991 as a subsidiary of IBM’s printer division, has been offering imaging solutions and technologies such as printers and multifunction devices for more than three decades. The company, still headquartered in Lexington, Kentucky, was acquired by Chinese investors in 2016, but is now preparing to welcome a new owner.
The integration of Lexmark imaging technologies with Xerox ConnectKey technology and advanced print and digital services aims to create a comprehensive product portfolio. This move will also strengthen Xerox’s position in the A4 color market and increase its presence in regions such as Asia-Pacific.
Together, Lexmark and
The combined organization will serve more than 200,000 customers in 170 countries, supported by 125 manufacturing and distribution facilities in 16 countries, but faces stiff competition from established players such as HP, Epson and Canon.
“Lexmark has a proud history of serving our customers with world-class technology, solutions and services, and we are excited to join Xerox and expand our reach with shared talent and a stronger portfolio of offerings,” said Allen Waugerman, president and director of Lexmark. executive officer. “Lexmark and Xerox are two great companies that together will be even bigger.”
Subject to regulatory and shareholder approval, the deal is expected to close in the second half of 2025. Until then, both companies will continue to operate independently.
