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April 20, 2016updated 05 Sep 2016 11:06am

Printer maker Lexmark sold to Chinese group for $3.6bn

News: Lexmark’s business groups, Imaging Solutions and Services and Enterprise Software, will continue unaffected.

By CBR Staff Writer

A consortium of investors led by Apex Technology and PAG Asia Capital has agreed to acquire computer-printer maker Lexmark International in a deal rumoured to be worth $3.6bn.

Legend Capital Management is also a member of the consortium. Lexmark provides printing and imaging products, software, solutions and services that help customers save time and money.

The all-cash deal will see the consortium will pay $40.50 per Lexmark share, which will be financed via equity contributions from the buyers and debt financing.

The transaction is anticipated to be completed in the second half of this year, subject to certain shareholder and regulatory approvals.

Lexmark’s two business groups, Imaging Solutions and Services and Enterprise Software, as well as the company’s regional and country operations, will continue unaffected and its headquarters will remain in Lexington, Kentucky,

Lexmark chairman and CEO Paul Rooke is expected to continue to lead the company upon completion of the transaction.

Rooke said: "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.

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"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."

Lexmark said the deal allows it to continue focus on strategic initiatives and improve access to market opportunities in Asia.

The company expects the transaction to not to disrupt its operations or the ongoing cost-savings initiatives.

Lexmark reported $3.7bn in revenue in 2014, about 57% from international sales. The company acquired and integrated various strategic software firms since 2010, further expanding its range of offerings to include new software solutions.

In March 2015, Lexmark acquired California-based software provider Kofax for $1bn to boost its enterprise software business.

The unified software platform from Lexmark is claimed to simplify and transform business processes for successful customer engagement.

Lexmark Enterprise Software creates a connection between users systems of engagement and systems.

The company’s unified platform unites capture, mobility, process and content management, collaboration, search and analytics.

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