Xerox to Acquire Lexmark in $1.5 Billion Deal to Boost Global Print Business

The acquisition will expand Xerox's portfolio, enhance geographic reach, and reduce debt while cutting dividends to fund the strategy.

Xerox Holdings announced a $1.5 billion acquisition of Lexmark International, including debt, to strengthen its print and managed services business.
The deal will integrate Lexmark's solutions with Xerox's ConnectKey technology, expanding offerings in the A4 color market and enhancing global distribution, particularly in the Asia-Pacific region.
The combined entity will serve over 200,000 clients across 170 countries, supported by 125 manufacturing and distribution facilities in 16 countries.
Xerox plans to reduce its gross debt leverage ratio, with $200 million in expected cost synergies contributing to financial improvements.
To support this strategy, Xerox's Board approved a dividend reduction from $1 per share to 50 cents per share, reallocating funds for debt reduction and maintaining a competitive yield.