XEROX Holdings Corp. has completed its $1.5 billion acquisition of Lexmark International Inc., a move that significantly expands its footprint in the global print and managed print services market and underscores its push to reinvent itself as a leader in hybrid workplace solutions.
In a statement sent, the all-cash deal, which includes net debt and assumed liabilities, was finalized with Lexmark’s former owners —Ninestar Corp., PAG Asia Capital, and Shanghai Shouda Investment Centre — Xerox said in a statement. The acquisition brings together two long-time industry players, positioning the combined entity among the top five in every major print segment and making it the market leader in managed print services.
“We’ve long admired Lexmark’s strong print and managed print services reputation, robust client and partner base, and global presence,” said Xerox chief executive officer (CEO) Steve Bandrowczak. “Over the years, we’ve built a collaborative partnership, and today, we take our business to the next level.”
The acquisition will create a combined organization serving more than 200,000 clients across 170 countries, supported by 125 manufacturing and distribution facilities in 16 countries Bandrowczak will remain CEO of the unified company, which will be led by a blended executive team from Xerox and Lexmark.
“Together, we will drive greater success for our clients and partners through a broader portfolio of Print and Managed Print solutions, furthering our Reinvention and solidifying our path toward long-term profitable growth,” Bandrowczak said.
“Pivotal moment”
Lexmark president and CEO Allen Waugerman, who will step down following the close of the transaction, called the acquisition “a pivotal moment” for both companies.
“Leading Lexmark has been an incredible opportunity and I look forward to the accomplishments that lie ahead,” he said.
Xerox expects the integration to improve its revenue mix by increasing exposure to higher-growth segments within the print industry, while enabling structural cost efficiencies. The company also gains expanded manufacturing capacity and broader distribution reach, positioning it to compete more aggressively across geographies and industries.
“With the acquisition of Lexmark, Xerox now stands among the top five in every major print segment and is the market leader in managed print services,” Bandrowczak said. “This strategic combination strengthens our core business by adding exposure to growing parts of the print market, manufacturing capacity, and expanding our distribution reach.”
Impact
The acquisition also has implications for Lexmark’s operations in Cebu City, Philippines. Lexmark Research and Development Corp., which employs over 1,800 people, plays a key role in the company’s global R&D and business services strategy. It provides software, embedded systems, hardware solutions and global business services from its Cebu hub.
The deal is part of Xerox’s broader transformation strategy, dubbed “Reinvention,” aimed at shifting the company’s focus from legacy hardware to more services-led, digitally enabled workplace solutions. Xerox has said it will continue investing in AI, automation and hybrid work infrastructure as it positions itself for long-term growth. / KOC