Xerox Holdings Corporation Enters into Equity Purchase Agreement with Ninestar Group for Acquisition of Lexmark

Xerox Holdings Corporation (NYSE: XRX) has recently entered into an Equity Purchase Agreement with Ninestar Group Company Limited for the acquisition of Lexmark International II, LLC, a subsidiary of Lexmark International, Inc. The agreement, secured on December 22, 2024, outlines that Xerox Corporation will purchase all of the issued and outstanding equity securities of Lexmark for $1.5 billion, inclusive of net debt and other assumed liabilities.

The Purchase Agreement incorporates various representations, warranties, and covenants from both parties, including operational commitments by Lexmark until the transaction closes. Xerox Corporation has also acquired representation and warranty insurance for selected breaches and indemnification from the Seller for certain losses.

The completion of this acquisition is contingent upon meeting specific closing conditions. These include regulatory approvals, such as the termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act and shareholder approvals. The transactions are anticipated to conclude in the second half of 2025.

Additionally, Xerox Corporation and Xerox Holdings Corporation have secured new debt financing commitments to fund this acquisition. The agreements involve a combination of senior secured and unsecured debt facilities, with commitments from various financial entities.

In light of this acquisition, the Xerox Board of Directors has also approved a reduction in the annual dividend to 50 cents per share to enhance financial flexibility and debt repayment capacity while preserving shareholder returns.

This strategic deal aligns with Xerox’s objective to expand its presence in the print and managed print services market. The acquisition of Lexmark positions Xerox to offer a broader portfolio of print solutions and technologies, consequently enhancing its global market share and client offerings.

The transaction is expected to yield financial benefits for Xerox, with immediate accretion to earnings per share and free cash flow. Following the acquisition, Xerox plans to focus on achieving cost synergies while fortifying its competitive position and market share expansion.

Disclaimer: This article contains forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995, with inherent risks and uncertainties that may impact actual results. Interested parties are advised to refer to Xerox Holdings Corporation’s and Xerox Corporation’s combined Annual Report on Form 10-K for additional information on risks associated with these forward-looking statements.

This news is provided in compliance with Regulation FD Disclosure and remains subject to changes as per further development.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Xerox’s 8K filing here.

About Xerox

Xerox Holdings Corporation, together with its subsidiaries, operates as a workplace technology company that integrates hardware, services, and software for enterprises in the Americas, Europe, the Middle East, Africa, India, and internationally. The company operates through two segments, Print and Other; and FITTLE.