Xerox Completes $1.5B Lexmark Acquisition, Supports Print Market Position

Xerox Holdings Corporation (NASDAQ:XRX) is one of the cheap IT stocks hedge funds are buying. On July 1, Xerox officially completed its acquisition of Lexmark International Inc. This transaction, valued at $1.5 billion including net debt and assumed liabilities, involved the purchase of Lexmark from Ninestar Corporation, PAG Asia Capital, and Shanghai Shouda Investment Centre.

The new structure accelerates innovation and scale by using the combined talent of both organizations. Xerox now ranks among the top 5 in every major print segment and is the market leader in managed print services.

Xerox expects the transaction to be accretive to its 2025 adjusted EPS and free cash flow, while also resulting in a lower level of pro forma gross debt leverage. The company also anticipates ~$240 million in transaction-related cost synergies, which are projected to contribute over $1 per share of additional adjusted EPS accretion by the end of the 2nd year following the transaction’s close.

Xerox Holdings Corporation (NASDAQ:XRX) is a workplace technology company that integrates hardware, services, and software for enterprises in North America, Latin America, Europe, the Middle East, Africa, India, and internationally.

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Disclosure: None. This article is originally published at Insider Monkey.