Xerox의 Lexmark 인수 : IDC의 견해

This IDC Market Perspective discusses Xerox's acquisition of Lexmark. On December 23, 2024, Xerox Holdings Corp. (Xerox) announced that it had agreed to buy Lexmark International Inc. (Lexmark) from a consortium consisting of Ninestar Corp., PAG Asia Capital, and Shanghai Shouda Investment Centre. The acquisition intends to strengthen the Xerox core print portfolio and build a broader global print and managed print services business better suited to meet the evolving needs of customers in the hybrid workplace. Xerox offered the rationale for the deal centered on its strategic fit that combines to have a formidable market presence (e.g., vertically integrated, a well-rounded portfolio of print hardware and services offerings, an extensive geographic coverage and customer types). Second, the company also sees Lexmark playing a pivotal role in providing solutions in the color A4 growth market as well as expanding its OEM platform in the A3 market. Last, Xerox states there are financial benefits in earnings per share and free cash flow. The company also believes that the deal will help accelerate its reinvention financial targets through improved competitive positioning and exposure to faster-growing print segments. It also believes the deal will help realize more than $200 million of identified cost synergies that can be achieved within two years of the acquisition's closure. This analysis examines the details of the planned acquisition, a review of recent challenges experienced by both parties that may have led to this move, commentary on how the move aligns with Xerox's strategic plans, and the ramifications of this action across the print/copy industry."Xerox's acquisition of Lexmark has many still unanswered questions. Both vendors were challenged to individually demonstrate revenue growth, but a combined organization may offer the potential for stronger market performance in the future," said Keith Kmetz, program vice president, Imaging, Printing, and Document Solutions research, IDC. "Ultimately, the success of the new combined Xerox-Lexmark will be unrealized for some time as the deal isn't expected to close until the second half of this year. It does, however, represent a possible jump start for the newly formed company to more effectively compete long-term in the evolving copy/print marketplace."

Executive Snapshot

New Market Developments and Dynamics

• What Led to This Move?
• A Merger Fueled by Significant Recent Circumstances
  • The Lexmark Situation and a Declining Revenue Trend
    • Software Transformation
      • Lexmark Is Acquired by a Consortium Out of Asia
      • IoT Transformation
      • U.S. Legislation Bans Vendors Affiliated with Lexmark
  • The Xerox Situation That Also Demonstrated Revenue Declines
    • Project Own It and Reinvention Brings Simplicity and Operational Efficiency to Xerox
    • Carl Icahn's Influence as a Major Shareholder
    • The Evolution of the Xerox-Fuji Xerox Relationship

IDC's Point of view

• Near-Term Lexmark Impact
• Near-Term Xerox Impact
• Competitive Landscape
• Xerox Hardware Portfolio
• Xerox Services Portfolio
• Channel Impact
• Geographic Expansion
• Opportunities and Challenges for Success

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• Related Research
• Synopsis