Asian investors to acquire Lexmark for $3.6 bn
Apex Technology, a group of Asian investors, Legend Capital Management and PAG Asia, will acquire Lexmark International, a US-based computer-printer manufacturer. The deal was sealed for roughly $3.6 billion, in a net cash deal worth $40.50 per share. Chairman of Apex Technology, Jackson Wang said that the company looks forward to providing better services to its customers and find growth opportunities together with Lexmark in future.
The deal was unanimously approved by Lexmark's Board of Directors and represents a 30 percent premium to the company's closing stock price.
According to a statement released by Lexmark, the business will operate as usual. It stated that Lexington will still continue to be Lexmark’s corporate headquarter and Paul Rooke will resume his office as the Chairman and CEO even in the new venture. Also, Lexmark’s country and regional operations, and Imaging Solution and Services & Enterprise Software (business groups) will resume business unaffected by the change in ownership.
In Paul Rooke’s word, equity contributions by Apex Technology and debt financing will finance the new amalgamation, which is likely to close in the second half of 2016—but only after receiving the regulatory approvals. He stated, “With the consortium's resources, we will be able to invest and grow, and fully penetrate into Asia Pacific to set up new markets in hardware, software, and print.”
It is much anticipated that the merging will help Lexmark take the next step, and also, give its employees new opportunities and benefit its customers. Also, commenting on the transaction, Lead Director Lexmark Board of Directors Jean-Paul Montupet, said “We expect operations to continue without any interruption and bring no change to the current cost-savings programme; rather, we anticipate that this extensive business review will strengthen us.”
