The $1.5 billion Xerox-Lexmark deal is now final. Here’s what we know
The $1.5 billion deal for Xerox Holdings Corporation to acquire one of its competitors and suppliers, Lexington-based Lexmark International, is final.
The two legacy printer and imaging manufacturing companies — the latter operating in Central Kentucky since 1991 — will combine and operate as one to “shape the future of the printing industry,” said Allen Waugerman, Lexmark’s outgoing president and CEO.
No details have been made available about potential job cuts or additions. There will be no immediate changes to Lexmark sites, including those in and around Central Kentucky, and the company anticipates continuing to have a presence in Lexington, Lexmark Global Communications Director Scott Shive told the Herald-Leader.
Xerox officials say the transaction that closed July 1 is expected to gradually increase earnings per share and free up capital so it can reinvest in itself and pay off debt without seriously impacting its operations.
Xerox also expects the deal to give it a more predictable revenue stream that will boost profitability.
The combined organization that makes printers, copiers and other office supplies will serve more than 200,000 clients in 170 countries. It will operate 125 manufacturing and distribution facilities in 16 countries.
In a statement sent to the Herald-Leader, Commerce Lexington President and CEO Bob Quick said the chamber was looking forward to welcoming Xerox to the community.
“The union of Xerox and Lexmark not only marks a significant point in the history of both companies but also expands this combined organization’s global reach and strengthens its position as a leader in workplace innovation,” he said.
Lexmark moves back to U.S.-based parent company
Lexmark is going back to being led by a U.S.-based parent company. But it’s unclear what might happen to its (and Xerox’s) manufacturing lines, especially as tariffs and trade policies entice companies to move those kinds of production operations back to the country.
The deal, which includes Xerox taking on Lexmark’s debt, puts the company in a position to compete better in a market it says is becoming “an evolving hybrid environment.”
The acquisition aligns with Xerox’s ongoing internal restructuring by diversifying its mix of revenue streams and then growing its profits, said Xerox CEO Steve Bandrowczak in a statement Tuesday following the deal’s close.
“This strategic combination strengthens our core business by adding exposure to growing parts of the Print market, manufacturing capacity and expanding our distribution reach,” he said.
“By uniting two complementary portfolios and deepening our capabilities, we’re better equipped than ever to deliver innovative, end-to-end solutions that drive success for our clients across every geography and industry.”
Lexmark spun out of IBM in the 1990s
In 2024, Lexmark employed approximately 1,555 U.S. employees and another almost 7,800 across the world. Commerce Lexington’s Executive Vice President of Economic Development, Gina Greathouse, told the Herald-Leader the company had around 1,000 local employees.
The company’s global headquarters is in Lexington, and the company has a long history of supporting the region with jobs and charitable donations, especially to Fayette County Public Schools, the University of Kentucky, Junior Achievement and the state’s Governor’s Scholars program.
Lexmark was spun out of IBM in the 1990s to house that company’s printers division, which was already operating and manufacturing products in Lexington.
Since then, Lexmark has sold hardware like printers and the software and services necessary for appliance upkeep, as well as managing files and ensuring cloud security. Before the acquisition, Lexmark supplied Xerox with some printer parts and other products.
In the early 2010s, Lexmark was on a buying binge to broaden its reach, though its stock began floundering and it began eliminating a significant number of jobs.
Then in 2016, Lexmark agreed to be acquired by China’s Apex Technology Co., PAG Asia Capital and Legend Capital Management in an all-cash transaction valued at $3.6 billion, not including debt, which took it off the public market.
How the Xerox-Lexmark deal came to be
Xerox and Lexmark announced the deal in December 2024.
Xerox officials said at the time the combination of businesses would put it in a better position to have long-term profitable growth and move its business into Asian and Pacific markets. It also said the acquisition meant the company could increase its segment of sales that includes smaller printers and copiers used in homes, products that Lexmark was known for.
According to Lexmark’s financial statements, the company ended 2024 with a revenue of almost $2.25 billion, but those same statements show the cost of making money was quite high. Last year, Lexmark had a net earnings loss of almost $743 million, a figure up $650 million compared to 2023.
A net loss happens when expenses exceed revenue and can occur when sales decline, competition increases or when there are higher costs to produce goods, among other causes.
In the five quarters before the deal was announced, Xerox’s revenue also was shrinking as the digital age caused demand for printers and other equipment to go down. Simultaneously, competition with such rivals as HP and Canon got tougher.
Xerox’s revenue in 2024, $6.2 billion, was down almost 10% from the preceding year, and its shares were down more than 50% last December compared to the start of 2024.
But Xerox has remained consistent in saying it anticipates scaling up its business following the deal with Lexmark to turn a healthy and constant profit through the efficiency that comes from having a hand in more parts of the supply chain.
“We’ve long admired Lexmark’s strong print and managed print services reputation, robust client and partner base, and global presence,” Bandrowczak said.
“Over the years, we’ve built a collaborative partnership, and today, we take our business to the next level.”
The company has also, in recent months, announced it was buying an Illinois-based IT products firm for $400 million.
This story was updated on July 9 around 10 a.m. to include a count of local Lexmark employees and a statement from Commerce Lexington President and CEO Bob Quick.
This story was originally published July 2, 2025 at 11:59 AM.
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