The American company Xerox has agreed to purchase laser printing equipment manufacturer Lexmark for $1.5 billion. Lexmark’s debts and other obligations will also be transferred to the new owner. The takeover is expected to be completed in the second half of 2025, subject to regulatory approval in the US and China, Bloomberg reported.

Image source: livemint.com

To finance the transaction, Xerox plans to use its own and borrowed funds. In connection with this, the company also announced a reduction in annual dividends from $1 to 50 cents per share. According to company representatives, the acquisition of Lexmark will reduce Xerox’s debt ratio from 6 to 4.4 times (excluding synergies).

Currently, Lexmark, led by CEO Allen Waugerman, who has been with the company since its founding in 1991 (after spinning off from IBM), is a Xerox partner and supplier. In 2016, a consortium of Chinese investors including Apex Technology (now Ninestar), PAG Asia Capital and Legend Capital acquired Lexmark for $3.6 billion, including debt. The new owners subsequently sold the enterprise software division to Thoma Bravo, but despite the change in ownership, Lexmark retained its American board of directors and management team.

After the deal was announced, Xerox shares rose 4.4% in pre-market trading on Monday, having previously seen brief declines. However, the company did not specify the exact amount of debt that it will take on from Lexmark.

Xerox is advised by Jefferies and Citigroup on the transaction, with legal support provided by Ropes & Gray LLP and Willkie Farr & Gallagher LLP. Lexmark and its owners are represented by Morgan Stanley, Strait Capital Management, Dechert LLP and King & Wood Mallesons.

admin

Share
Published by
admin

Recent Posts

Asus Unveils Its Best Ryzen 9000 Motherboard for $1,400 — ROG Crosshair X870E Extreme with Vapor Chamber for SSDs

Asus has officially unveiled its flagship ROG Crosshair X870E Extreme motherboard for AMD Ryzen processors…

48 seconds ago

PowerColor to Release Radeon RX 9070 XT Red Devil Graphics Card with Unique Backplates Soon

PowerColor is preparing another video card of the Red Devil series. The flagship model Radeon…

10 minutes ago

The Meta AI Lab that created the Llama model is slowly dying out – the company calls it a “new beginning”

Meta✴ AI research lab (formerly Facebook✴ Artificial Intelligence Research, or FAIR) is “slowly dying,” some…

20 minutes ago

Doom Launched on Doom Collector’s Edition Box

The question of whether Doom can be run on a particular device has been troubling…

1 hour ago

Doom Launched on Doom Collector’s Edition Box

The question of whether Doom can be run on a particular device has been troubling…

1 hour ago