Xerox Holdings Corporation announced on December 23, 2024, its agreement to acquire Lexmark International, Inc. for a total consideration of $1.5 billion, inclusive of net debt and other assumed liabilities. The acquisition is expected to close in the second half of 2025, subject to regulatory and shareholder approvals.
This strategic acquisition aims to strengthen Xerox's core print portfolio and expand its global print and managed print services business, particularly in the growing A4 color market and the APAC region. Xerox anticipates the transaction to be immediately accretive to adjusted earnings per share and free cash flow, with over $200 million in identified cost synergies expected within two years.
In conjunction with the financing for this acquisition, Xerox's Board of Directors approved a change in the dividend policy, reducing the annual dividend from $1 per share to $0.50 per share, starting with the dividend expected to be declared in the first quarter of 2025. This reduction is intended to provide incremental capacity for debt reduction while continuing to reward shareholders.
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