Xerox Stock Soars on $1.5B Acquisition of Printer Maker Lexmark | Global News Avenue

Xerox Holdings (XRXShares of the office products maker rose nearly 7% on Monday after the company announced a $1.5 billion deal to acquire privately held Lexmark International from its Chinese owner to address an increase in employees working flexible hours. The company also cut its dividend in half to help cover costs.

The company said the deal will “strengthen Xerox’s core printing portfolio and build a broader global printing and managed print services business to better meet the evolving needs of hybrid workplace customers.”

Xerox added that the acquisition will also help the company serve customers in the growing A4 color market and expand its presence in the Asia Pacific (APAC) region.

Xerox cuts dividend to help pay for acquisitions

The company noted that the acquisition will be funded through a combination of cash on hand and committed debt financing. The company explained that its annual dividend will be cut from $1.00 to $0.50 per year, beginning with the expected dividend in the first quarter of 2025. Xerox said the move “provides incremental capacity to reduce debt while continuing to reward shareholders with above-market yields.”

The transaction is expected to close in the second half of 2025.

Despite today’s gains, Xerox Holdings shares are still down 50% this year.