Xerox Holdings Corporation has announced the completion of its acquisition of Lexmark International, Inc. from Ninestar Corporation, PAG Asia Capital, and Shanghai Shouda Investment Centre. The transaction, valued at US$1.5 billion, is a significant milestone in Xerox’s strategic transformation and reinforces its commitment to delivering innovative workplace solutions in an evolving hybrid environment.
Steve Bandrowczak, CEO of Xerox, expressed his admiration for Lexmark’s strong reputation in print and managed print services, robust client and partner base, and global presence. He stated, “Together, we will drive greater success for our clients and partners through a broader portfolio of print and managed print solutions, furthering our reinvention and solidifying our path toward long-term profitable growth.”
Allen Waugerman, who will be stepping down from his leadership position with the close of the acquisition, described the moment as pivotal, shaping the future of the printing industry. The unified leadership team, led by Bandrowczak, is structured to accelerate innovation and scale, leveraging the deep bench of talent from both companies.
The combined organization will serve over 200,000 clients in more than 170 countries and operate 125 manufacturing and distribution facilities in 16 countries. Bandrowczak emphasized that the acquisition strengthens Xerox’s core business by adding exposure to growing parts of the print market, manufacturing capacity, and expanding its distribution reach.
Xerox completes major Lexmark acquisition
The acquisition was financed through a combination of cash on hand and debt financing. Xerox expects the transaction to be accretive to 2025 adjusted earnings per share and free cash flow, and result in a lower level of pro forma gross debt leverage. The company also anticipates approximately $240 million of transaction-related cost synergies to contribute over $1/share of additional adjusted EPS accretion by the end of the second year following the transaction close.
Jefferies LLC acted as the financial advisor to Xerox, with additional financial advice from Citi. Ropes & Gray LLP and Willkie Farr & Gallagher LLP served as legal advisors to Xerox. Morgan Stanley & Co.
LLC served as the financial advisor to others involved, and Strait Capital Management acted as financial advisor as well. Dechert LLP provided legal counsel, with King & Wood Mallesons serving as PRC counsel.
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