Xerox Acquires Lexmark to Expand Print Business

Xerox Holdings Corporation has announced a definitive agreement to acquire Lexmark International, Inc. from its current owners—Ninestar Corporation, PAG Asia Capital, and Shanghai Shouda Investment Centre—in a transaction valued at $1.5 billion, inclusive of assumed liabilities.

The acquisition is designed to enhance Xerox’s core print offerings and expand its global presence in the print and managed print services (MPS) sectors, aligning with evolving customer needs in the hybrid work environment.

“This acquisition brings together two industry leaders with shared values and complementary capabilities,” said Steve Bandrowczak, CEO of Xerox. “By combining our strengths, we aim to create a stronger organization, drive profitable growth, and deliver greater value to our clients—advancing our strategic transformation, or ‘Reinvention.’”

Lexmark, based in Lexington, Kentucky, has long been a valued technology partner to Xerox. Known for its innovative imaging solutions and best-in-class line of printers and multifunction devices, Lexmark’s integration into Xerox’s ecosystem—particularly through Xerox’s ConnectKey and advanced Print and Digital Services—will enhance product offerings and reinforce Xerox’s commitment to innovation and customer success.

Together, Xerox and Lexmark will serve over 200,000 customers in 170 countries, operating 125 manufacturing and distribution facilities across 16 countries. The combined entity will hold a top-five global market share across entry-level, mid-range, and production print segments, while continuing to play a major role in the large, stable MPS market.

The acquisition is also expected to boost Xerox’s position in the high-growth A4 color print market and extend its geographic footprint, particularly in the Asia-Pacific (APAC) region.

“Lexmark has a strong legacy of innovation and service, and we’re excited to join forces with Xerox,” said Allen Waugerman, President and CEO of Lexmark. “Together, we’ll be able to deliver even greater value through a more powerful portfolio and shared global reach.”

Xerox and Lexmark offer complementary product lines and market exposure, enabling vertical integration across manufacturing, distribution, and services.

The combined business will cover a wider range of clients and regions, with a balanced portfolio of print solutions.Lexmark’s leadership in A4 color print and its OEM platform offers a foundation for expansion into the A3 segment.

Post-merger, Xerox will have a broader and more competitive portfolio, opening up new growth avenues in equipment, MPS, digital services, and IT solutions. The transaction is expected to be immediately accretive to earnings per share (EPS) and free cash flow. More than $200 million in cost synergies are projected within two years of closing.

The deal supports Xerox’s Reinvention goals of stabilizing revenue and achieving double-digit adjusted operating income.The acquisition will reduce Xerox’s gross debt leverage ratio from 6.0x to 5.4x immediately post-closing, and to 4.4x after synergies. Xerox aims to bring leverage below 3.0x in the medium term, supported by improved free cash flow and focused debt reduction.

The acquisition will be funded through a mix of cash on hand and committed debt financing. In line with this, Xerox’s Board has approved a change to its dividend policy—reducing the annual dividend from $1.00 per share to $0.50, beginning with the expected Q1 2025 payout. This adjustment provides additional flexibility to prioritize debt reduction while maintaining an attractive yield for shareholders.

The Xerox Board of Directors has unanimously approved the transaction. The deal remains subject to regulatory approvals, Ninestar shareholder consent, and customary closing conditions. It is expected to close in the second half of 2025. Until then, Xerox and Lexmark will continue to operate independently.