Lexmark Unveils Final Buyers

Since officially announcing its strategic alternatives plan in October 2015, Lexmark has created a wealth of mysteries in the industry, spurring endless guesses as to who would finally buy the company.

Now Lexmark International, Inc. has announced that it has entered into a definitive merger agreement with a consortium of investors led by China-based Apex Technology Co., Ltd. (Apex) and PAG Asia Capital (PAG).

Under the agreement, Lexmark will be acquired for $40.50 per share in an all-cash transaction with a net-cash enterprise value of approximately $3.6 billion, which represents a 30% premium to Lexmark’s undisturbed closing stock price two days prior to the announcement of the strategic alternatives plan. Lexmark’s two business groups, Imaging Solutions and Services and Enterprise Software, as well as the company’s regional and country operations, are expected to remain unaffected and benefit strategically and financially from the transaction.

The company also claims that an exhaustive strategic alternatives review process will be followed through, aiming to maximize the shareholder value. It will maintain its corporate headquarters in Lexington, Kentucky, with Paul Rooke, chairman and chief executive officer of Lexmark, continuing to lead Lexmark after the transaction closes.

“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.” said Paul Rooke.

Although the transaction has been unanimously approved by Lexmark’s Board of Directors, it is subject to approval by Lexmark shareholders, regulatory approvals in the U.S., including the Committee on Foreign Investment, China and certain other foreign jurisdictions, and other customary closing conditions. The merger is expected to close in the second half of 2016.

On October 23, 2015, Lexmark announced through its official press release that it was exploring strategic alternatives, with hopes of maximizing value for shareholders and unlocking the company’s intrinsic value. Following that, Lexmark held discussions with several potential buyers about the sale of the company.

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