(Reuters) – Office equipment maker Xerox () will buy Lexmark International, a Chinese-owned maker of printers and printing software, in a US$1.5 billion (R$9.29 billion) deal, reports said. companies on Monday (23).
The purchase together with Ninestar Corp, PAG Asia Capital and Shanghai Shouda Investment Center will return Lexmark to US ownership. Formed from IBM in 1991, Lexmark was sold to a group of Chinese investors in a deal valued at US$3.6 billion in 2016.
Xerox has reported shrinking revenue for five consecutive quarters as demand for printers and related equipment has declined in the digital age. The company also faces stiff competition from HP and Canon, among others.
Its shares, which have fallen more than 50% this year, were trading up 7% on Monday.
Lexmark, already a supplier to Xerox, will increase its presence in the A4 color printing segment, one of the few areas expanding in an industry facing challenges due to the shift to digital documents.
The combined company is expected to serve more than 200,000 customers in 170 countries and have a market share among the top five companies globally across multiple printing segments.
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Xerox expects the deal to immediately help profit and generate more than $200 million in annual cost savings, helping to reduce marketing and real estate expenses, among others.
“This money can be reinvested for the future. Xerox is preparing for the future,” said Zeus Kerravala, principal analyst at ZK Research.
Xerox anticipates financing the deal, which will likely close in the second half of 2025, through a combination of cash and debt financing.
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The company said it does not expect any regulatory challenges to the deal, which will need approvals from countries including China.
