'Based on Lexmark’s latest operational status'

UPDATE: Xerox responds to media reports on Lexmark deal price change

27 March 2025

Business

Xerox said in December the deal would strengthen its print portfolio

Reuters has reported that laser printer manufacturer Lexmark is set to be sold to Xerox at a much lower price than previously announced in December, although Xerox has stated the valuation remains the same.

Lexmark is owned by Ninestar Corporation, PAG Asia Capital, and Shanghai Shouda Investment Centre. The consortium acquired Lexmark eight years ago in a $3.6bn deal.

News agency Reuters said today (27 March) that China-based Ninestar Corporation was now planning to sell Lexmark to Xerox in a deal estimated at up to $150m (£116m) – far lower than the $1.5bn valuation of the deal announced in December.

Reuters said that in an exchange filing on Wednesday (26 March), Ninestar estimated the price of the transaction to range from $75m to $150m, “based on Lexmark’s latest operational status”.

Ninestar had said in a December stock exchange filing that the price of the transaction was calculated based on the $1.5bn base figure, the company’s adjusted net operating capital, and estimated cash on the transaction day, with Lexmark’s debt and transaction fees deducted from the total amount, according to Reuters.

Earlier this week Xerox announced a major two-part debt offering to finance the redemption of part of the Lexmark acquisition, as well as some senior notes due in 2025.

Just before Christmas, Xerox had said the deal would strengthen its print portfolio by bringing in several lines of printers suitable for corporate in-house reprographics and the A4 colour market.

At the time, Steve Bandrowczak, CEO at Xerox, said: “Our acquisition of Lexmark will bring together two industry-leading companies with shared values, complementary strengths, and a deep commitment to advancing the print industry to create one stronger organization.

“By combining our capabilities, we will be better positioned to drive long-term profitable growth and serve our clients, furthering our Reinvention.”

The ‘Reinvention’ strategy has seen Xerox reduce its workforce, cut legacy machine production, focus on its digital and print services, and release multiple new print products.

Last October, Xerox signed a deal to acquire ITsavvy, a US provider of integrated IT products and associated services, for $400m.

Xerox’s share price was up by 0.57% to $5.29 at yesterday’s close (52-week high: $18.16, low: $5.12).

UPDATE 5.40pm 27 March:

In a statement released on 27 March, Xerox said the value of the deal remained the same as previously announced in December.

The manufacturer stated: “Following recent media reports regarding the terms of the Xerox acquisition of Lexmark International, Inc., we reaffirm that the transaction remains valued at $1.5bn, as announced in December 2024. This figure includes debt and other liabilities, as publicly disclosed in Xerox U.S. regulatory filings at the time of the announcement. The terms of the deal, as communicated by Xerox, remain accurate and unchanged.”

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