Xerox CEO Steve Bandrowczak said “Our acquisition of Lexmark will bring together two industry-leading companies with shared values and complementary strengths.. By combining our capabilities, we’ll drive long-term growth and further our Reinvention.”

Lexmark makes printers and multifunction devices. Integrating its offerings with Xerox’s ConnectKey technology will enhance Xerox’s product portfolio and value proposition. The acquisition also strengthens Xerox’s presence in the A4 color market and the Asia-Pacific region, with the combined company serving over 200,000 clients across 170 countries.

 Lexmark’s president Allen Waugerman said, “We’re excited to join Xerox and expand our reach with a stronger portfolio.” Bandrowczak added, “Our shared values will streamline operations and improve efficiencies.”

The merger combines Xerox and Lexmark’s strengths into a vertically integrated entity offering a comprehensive range of print equipment and MPS. Key benefits include complementary operations and a broader portfolio catering to diverse client needs.

The pair think they can provide enhanced offerings in the growing A4 color market and digital services.  The take over will improve both sides  debt leverage from 6.0x to 5.4x initially, with further reductions later.

Xerox will finance the deal with cash and debt. To support this, the Xerox Board approved a reduction in its annual dividend from $1 per share to 50 cents per share starting in 2025. This change allows for increased debt repayment while maintaining an attractive yield.

The transaction, unanimously approved by Xerox’s Board, is subject to regulatory and shareholder approvals and is expected to close in the second half of 2025. Until then, Xerox and Lexmark will operate independently.