Xerox Completes Acquisition of Lexmark
As we had expected, Xerox has completed its acquisition of Lexmark International for $1.5 billion – and the big question is if the merger can revive the fortunes of both companies in what is a declining market.
As we had expected, Xerox has completed its acquisition of Lexmark International for $1.5 billion – and the big question is if the merger can revive the fortunes of both companies in what is a declining market.
It’s our opinion that with the approval of a majority of Ninestar shareholders this week, Xerox’s successful acquisition of Lexmark......
On June 12th, Celiveo, a provider of cloud-based print management, announced the launch of Celiveo 365, a Cloud print solution......
This week’s most interesting news was the announcement of a new partnership under which Ricoh USA will provide Brother’s A4 Workhorse printer and copier/MFP portfolio.
Dividend reduction part of company strategy to reduce debt incurred for Lexmark acquisition.
Net profit plummets, while revenue also down.
Company focusing on indirect sales, as well expanding into digital and IT services, and production print – as it reaffirms commitment to print with pending Lexmark acquisition.
Despite some big potential advantages for Xerox, there are some critical potential drawbacks to it acquiring Lexmark, including aggressive responses from competitors and erosion of the Lexmark brand identity.
Company cites large existing base of SMB clients for its IT services, which are expected to top over $700 billion in revenue this year.
Although many printer and copier/MFP companies have shifted production because of previous tariffs, many, such as Xerox and Lexmark would be particularly affected.
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The proposed Lexmark acquisition should help Xerox with A4 production expansion, stable product supply, and market expansion – in ways similar to how HP’s acquisition of Samsung’s printer business helped HP.
Xerox says merger offers many benefits – including a stable supply of printers and MFPs – while Lexmark will no longer be associated with Ninestar and allegations of slave labor.
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