Ninestar Claims Pantum Acquisition Will Not Conflict with Lexmark

Ninestar Claims No Conflict Between Pantum and Lexmark

Ninestar Claims No Conflict Between Pantum and Lexmark

Ninestar Claims Pantum Acquisition Will Not Conflict with LexmarkIn reply to the queries from the China securities regulatory commission over its acquisition of Pantum, Ninestar claims there will be no conflict with its Lexmark business.

According to cninfo.com.cn, Ninestar explained the reasons from the below perspectives:

  • Due to their different development histories and resources generated during the development, Pantum and Lexmark are different in consumer groups as well as competitive advantages.A spin-off from IBM in 1991, Lexmark was acquired by Ninestar in 2016. It focuses to provide one-stop office solutions through its printers, print management software platform, as well as content and workflow management platform to banks, schools, government institutes, medical institutes, insurance companies and large enterprises in developed countries.

    Evolving from the printer business unit of Seine Printing Technology, Pantum officially released its first self-developed printer, targeting small-to-medium companies and individual customers who care more about cost-effectiveness. In addition, Pantum also focuses on the high confidential-demanding and policy-driven segments, such as government institutional users, state-owned enterprise users, and state-owned finance users.

  • Pantum and Lexmark will not compete with each other, as there is a big difference between the two in product positioning and dominant market location.

1. Pantum and Lexmark will not compete with each other as their self-developed products are greatly different in function and price, and as a result, they have different target channels and customers.

Ninestar Claims Pantaum Acquisition Will Not Conflict with Lexmark Business

2. Pantum and Lexmark will complement their production lines through original design manufacturing (ODM), exerting a strategic synergy effect.

Pantum will purchase ODM products from Lexmark to supply the Information Technology Application Innovation market, and few go to the business market. Lexmark purchase ODM products from Pantum to meet the demand for diversity.

3. Pantum has a different market from Lexmark. Among those overlapped market regions, their sales channels are different. Therefore, the two will not compete with each other in business.

Ninestar Claims Pantaum Acquisition Will Not Conflict with Lexmark Business

4. Given their relatively low market ratios in the global market, the possibility of Lexmark competing with Pantum is very small.

Ninestar Claims Pantum Acquisition Will Not Conflict with Lexmark

5. Lexmark benefits from cooperation with Pantum.


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