|Home » Printer & Ink News » 4.22.16: Lexmark Announces Future Plans|
Lexmark Announces Future Plans
April 22, 2016
Earlier this week Lexington, KY-based Lexmark Inc. put an end to all of the speculation surrounding the company’s future when they announced that they had agreed to be acquired by Apex Technology and PAG Asia Capital, both of whom are headquartered in Asia. This marks the end of a long process where Lexmark invested time and money into determining their best way forward. Despite speculation of a split, the company instead was sold in its entirety to the group of investors.
Some key takeaways to note here right off the bat:
This new venture and entering into a new era at Lexmark, according to the news, was unanimously approved by the Lexmark Board of Directors, and will result in a 30% premium to current investors. Lexmark will continue to operate with both current business groups, Imaging Solutions and Services and Enterprise Software as normal, as well as the company’s regional and country operations. One important note is that with the consummation of the transaction, Lexmark common stock (Symbol: LXK) will no longer be traded on the New York Stock Exchange. While the Board has approved the transaction, it is still subject to a vote of Lexmark shareholders and faces regulatory approvals in both the United States and China.
Regarding the news, chairman and CEO Paul Rooke stated, "This is an exciting transaction that Lexmark's Board of Directors believes is in the best interests of our shareholders following an exhaustive strategic alternatives review process to maximize value. The transaction will benefit our customers and provide new opportunities for our employees. As part of the Consortium, Lexmark will be able to reach the next level of growth and innovation, to the benefit of our customers, business partners and suppliers, faster than we could achieve on our own. With the Consortium's resources, we will be able to continue to invest in and grow the business to more fully penetrate the Asia Pacific market for hardware, software and managed print services."
Jean-Paul Montupet, lead director of the Lexmark Board of Directors, added, "This transaction represents the culmination of an extensive review process by the Board of Directors and the next step in Lexmark's growth and transformation. We anticipate that the transaction will cause no disruption to our operations or our ongoing cost-savings initiatives, and will only strengthen the business."
Weijian Shan, group chairman and CEO of PAG Lexmark is a recognized global leader in printing technology and enterprise software, with a proven track record of performance, a consistent annuity-based business model and a talented workforce. We look forward to working with Lexmark's management team and focusing on expanding the business in the Asia Pacific region."
Finally, Jackson Wang, Apex Technology chairman remarked, "Lexmark's passion for excellence and unwavering commitments to customers, employees and communities represent a tremendous cultural fit. We are excited to work alongside Lexmark as it continues to invest in advanced technologies and solutions to best serve its customers and business partners while simultaneously pursuing additional untapped opportunities for future growth."