The acquisition is expected to be completed in the second half of 2025. Xerox expects to realize annual cost savings of 200 million dollars within two years after the completion of this deal.
It is important for one company to acquire another because it offers the opportunity to increase market share, gain a competitive advantage and expand its product or service portfolio. Accordingly, Xerox announced plans to acquire Lexmark, one of its competitors in the printer and printing software solutions industry, for $1.53 billion.
The acquisition is expected to be completed in the second half of 2025. Xerox expects to realize annual cost savings of $200 million in the two years following the completion of this deal.
In fact, this acquisition plan can be seen as part of Xerox’s effort to improve its weakening financial situation. Because the company’s sales decreased by 7.5 percent to 1.53 billion dollars in the third quarter of 2024. It is also predicted that the company will complete 2024 with a 10 percent revenue decline.
With this move, Xerox aims to increase its global market share and stabilize its revenues. Following the acquisition, the company aims to become one of the five largest companies in the printing industry. Xerox also plans to integrate Lexmark products and make its ConnectService application compatible with Lexmark printers.
Let us remind you that Lexmark was founded by IBM in 1991. The company was acquired by Ninestar, PAG Asia Capital and Shanghai Shouda Investment Center in 2016. Lexmark has customers in more than 170 countries.
