Xerox takes over Lexmark: New market leader in print subscriptions
The takeover of Lexmark by Xerox has been completed. It is not least about managed print.
(Image: Xerox)
Printer manufacturer Lexmark International is now owned by Xerox Holdings. The takeover of Lexmark by Xerox, which was announced shortly before Christmas 2024, has received all the necessary approvals and was completed on July 1. Lexmark was valued at 1.5 billion US dollars, including its liabilities. According to Xerox, the combined company is among the top five in all major printer market segments and even the global market leader in managed print services.
Customers do not buy printers and consumables themselves, but pay ongoing fees. In return, the service provider supplies printers, spare parts, maintenance, paper, toner, or ink as well as software and statistical evaluations. This is more convenient and safer for subscribers to budget for, and generally much more profitable for printer providers. Thanks to the takeover, the Xerox Group now has more than 200,000 customers in over 170 countries. There are a total of 125 production and logistics sites in 16 countries.
“This strategic combination strengthens our core business by opening up access to growing parts of the printer market and production capacity and increasing our distribution reach,” says Xerox CEO Steve Bandrowczak, explaining the economic background.
The financials
Lexmark was spun off from IBM in 1991. Since 2016, Lexmark has been owned by a Chinese consortium led by Ninestar Corporation (then Apex Technology). Xerox is covering the purchase price with a mixture of cash and loans, and the Group is also halving its dividend payout.
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However, the takeover should lead to higher free cash flow in the current year. Expected synergies should be reflected in higher earnings per share from the end of 2027. Xerox will continue to employ some previous Lexmark managers, but Lexmark CEO Allen Waugerman will leave the company.
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