Xerox is making a significant financial move to acquire Lexmark by shelling out billions.
Xerox is making a significant financial move to acquire Lexmark by shelling out billions.
Merge of Titans: Following decades of cutthroat rivalry in the printing and photocopier sector, Xerox and Lexmark are now set to merge in a billion-dollar accord. The objective is to foster expansion and navigate the hurdles the industry is facing.
Two heavyweights of the printing and photocopier landscape are about to share the same space: Xerox is buying out Lexmark in a substantial deal. Leaning towards its base in Kentucky, Lexmark had been under the ownership of Asian investors priorly. As per the statement released by both entities, Lexmark, including its debts, is estimated to be worth a whopping $1.5 billion (approximately €1.44 billion).
Xerox, long known for its copier services, is now aspiring to make a significant impact in the digital printing arena. Due to underperforming device sales, Xerox's stocks have been experiencing some turbulence. As for Lexmark, it split off from the founding father of computing, IBM, in the early '90s, and was subsequently acquired by Chinese investors for approximately $2.5 billion in 2016.
Xerox CEO, Steve Bandrowczak, spoke to the Wall Street Journal, expressing that the acquisition of Lexmark is geared towards stimulating growth, despite the current challenges in the industry. Besides other advantages, Xerox could potentially leverage Lexmark's brand recognition in Asian markets.
The technical integration of Xerox and Lexmark's systems is expected to be complex, given their unique digital printing technologies. This merger aims to strengthen Xerox's position in the global market, leveraging Lexmark's strong brand recognition in Asian markets.