Xerox says the deal, unveiled Monday, will ‘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 clients in the hybrid workplace.’

Global print giant Xerox said it has struck a deal to buy rival, partner and supplier Lexmark for $1.5 billion from the company’s Chinese owners in a blockbuster print deal.

Norwalk, Conn.-based Xerox said the deal, announced Monday, will “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 clients in the hybrid workplace.”

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Lexmark’s current owners are Ninestar Corporation, PAG Asia Capital and Shanghai Shouda Investment Centre.

The deal is expected to close in the second half of 2025, subject to regulatory approvals, approval of Ninestar’s shareholders and other customary closing conditions. Xerox said its board of directors has unanimously approved the transaction, which will be funded through a “combination of cash on hand and committed debt financing.”

Once the deal is closed, it will be “immediately accretive” to Xerox’s earnings per share and free cash flow in addition to helping the company reach financial targets of revenue stabilization and double-digit adjusted operating income faster, according to the company. Xerox said it plans to cut more than $200 million in costs within the first two years of the combined organization.

Xerox’s stock price was up more than 3.5 percent Monday morning.

“Our acquisition of Lexmark will bring together two industry-leading companies with shared values, complementary strengths, and a deep commitment to advancing the print industry to create one stronger organization,” said Xerox CEO Steve Bandrowczak in a statement.

“By combining our capabilities, we will be better positioned to drive long-term profitable growth and serve our clients, furthering our reinvention,” he added.

Xerox said the deal will enable it to “create a superior offering portfolio” and improve its ability to “serve clients in the large, growing A4 color market and diversify its distribution and geographic presence,” including in the Asia-Pacific region. The combined organization is expected to have more than 200,000 customers in 170 countries as well as 125 manufacturing and distribution facilities in 16 countries, according to Xerox.

“Lexmark has a proud history of serving our customers with world-class technology, solutions and services, and we are excited to join Xerox and expand our reach with shared talent and a stronger portfolio of offerings,” Lexmark President and CEO Allen Waugerman said in a statement. “Lexmark and Xerox are two great companies that together will be even greater.”