Xerox buys Lexmark for $1.5 billion to build a US printer giant that can compete with HP
- The acquisition of Lexmark will strengthen Xerox’s efforts to improve its footprint in the enterprise market
- Lexmark was the former printer division of IBM and, like its PCs and servers, was sold to Chinese investors
- Xerox faces enormous competition from HP, Epson and Canon
Xerox has announced an agreement to acquire Lexmark in a deal valued at $1.5 billion, creating a new global printing giant.
The company says the deal will enable Xerox to expand its printing portfolio and broaden its global footprint and service offerings.
“Our acquisition of Lexmark will bring together two leading companies with shared values, complementary strengths and a deep commitment to advancing the printing industry to create one stronger organization,” said Steve Bandrowczak, CEO at Xerox. “By combining our capabilities, we will be better positioned to drive long-term profitable growth and serve our customers, furthering our reinvention.”
Strengthening Xerox’s position
Founded in 1991 as a spin-off from IBM’s printer division, Lexmark has been providing imaging solutions and technologies such as printers and multifunction devices for more than thirty years. The company, which is still headquartered in Lexington, Kentucky, was acquired by Chinese investors in 2016 but is now preparing for the arrival of a new owner.
The integration of Lexmark’s imaging technologies with Xerox’s ConnectKey technology and advanced print and digital services is intended to create a comprehensive product portfolio. This move will also strengthen Xerox’s position in the A4 color market and expand its presence in regions such as Asia Pacific.
Together, Lexmark and
The combined organization will serve more than 200,000 customers in 170 countries, supported by 125 manufacturing and distribution facilities in 16 countries, but faces stiff competition from established players such as HP, Epson and Canon.
“Lexmark has a proud history of serving our customers with world-class technology, solutions and services, and we are excited to join Xerox and expand our reach with shared talent and a stronger portfolio of offerings,” said Allen Waugerman, president and chief executive officer of Lexmark. “Lexmark and Xerox are two great companies that will be even greater together.”
Subject to regulatory and shareholder approval, the deal is expected to close in the second half of 2025. Until then, both companies will continue to operate independently.