News Summary
Xerox Holdings Corporation has completed its acquisition of Lexmark International with a deal valued at $1.5 billion. The acquisition, which closed on July 1, brings together two established companies in the printing and imaging industry. Lexmark will maintain its operations in Lexington, Kentucky. This strategic merger aims to strengthen Xerox’s market position and profitability, supporting its long-term growth goals. Details regarding workforce impacts remain undisclosed, while the companies expect to better serve their combined client base of over 200,000 globally.
Lexington, Kentucky – Xerox Holdings Corporation has finalized its acquisition of Lexmark International in a deal valued at $1.5 billion, which includes net debt and assumed liabilities. The transaction closed on July 1, 2025, following an announcement made in December 2024.
Both companies are firmly situated within the legacy printer and imaging manufacturing sector, with Lexmark having a long-standing presence in Lexington since its establishment in 1991. Following the acquisition, Lexmark is expected to maintain its operations and headquarters in Lexington, indicating no imminent changes to its operational sites.
Xerox anticipates that the integration of Lexmark will bolster its market position by gradually increasing earnings per share and freeing up capital for reinvestment and debt repayment, while avoiding significant disruptions to operational activities. The combined organization will serve over 200,000 clients across 170 countries and will manage 125 manufacturing and distribution facilities in 16 countries.
Strategic Objectives of the Merger
The acquisition of Lexmark aims to enhance Xerox’s profitability through the establishment of a more predictable revenue stream and a diversified revenue mix. As the printing market continues to evolve into a hybrid environment, the merger is seen as a strategic response to the shifting needs of customers.
Xerox CEO Steve Bandrowczak emphasized the importance of combining both companies’ portfolios to improve manufacturing capacity and distribution reach. The merger is projected to deliver enhanced product offerings, better service coverage, and integrated solutions for customers, addressing the competitive pressures emanating from rival companies such as HP and Canon.
Workforce Implications
As of 2024, Lexmark employed approximately 1,555 individuals in the U.S. and nearly 7,800 globally. However, details regarding potential job cuts or additions have not been disclosed following the acquisition. Lexmark has historically contributed to the Lexington community through employment and charitable initiatives.
Background on Lexmark and Xerox
Lexmark emerged from IBM in the 1990s and has evolved to produce a variety of products, including printers, print management software, and peripherals. The company faced financial challenges prior to the acquisition, reporting a significant net earnings loss of nearly $743 million in 2024. This downturn is part of a broader trend, as Xerox also experienced revenue shrinkage, with reported earnings at $6.2 billion in 2024, a 10% decline from the previous year.
The acquisition aligns with Xerox’s broader restructuring efforts aimed at enhancing performance across various business lines and services. By taking on Lexmark’s existing debt, Xerox is strengthening its competitive positioning within a challenging market landscape.
Future Outlook
The leadership structure of the combined company will include executives from both Xerox and Lexmark, with Bandrowczak continuing as CEO of Xerox post-acquisition. This merger supports Xerox’s long-range goals of profitable growth by increasing its exposure to expanding segments of the print market and improving operational efficiencies.
This significant acquisition marks a pivotal moment for both companies as they navigate the rapidly changing dynamics of the printing industry, aiming to shape the future of printing services and products for businesses and consumers worldwide.
Deeper Dive: News & Info About This Topic
HERE Resources
Lexington Mayor Gorton Presents Future Goals in State of the City
Additional Resources
- Xerox News Release
- MSN Money
- Latham & Watkins News
- Wikipedia: Xerox
- Google Search: Xerox Lexmark acquisition
Author: STAFF HERE LEXINGTON KY STAFF
The LEXINGTON STAFF WRITER represents the experienced team at HERELexingtonKY.com, your go-to source for actionable local news and information in Lexington, Fayette County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Woodland Art Fair, Crave Food and Music Festival, and Railbird Festival. Our coverage extends to key organizations like Commerce Lexington and Blue Grass Community Foundation, plus leading businesses in education, manufacturing, and technology that power the local economy such as University of Kentucky, Toyota Motor Manufacturing, and Lexmark. As part of the broader HERE network, including HEREBowlingGreen.com and HERELouisville.com, we provide comprehensive, credible insights into Kentucky's dynamic landscape.
