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Apex-Lexmark merger completed

November 29, 2016

apexlogoThe OEM confirmed the “successful completion” of the deal, with President and CEO Paul Rooke stepping down.

Lexmark announced that the deal had been completed, noting that under the terms of the agreement, its shareholders “will receive” $40.50 (€38.15) per share in cash, with the deal having received “all of the necessary approvals” and “customary closing conditions”. The consortium that purchased Lexmark, led by Apex and a host of investment firms, will “maintain Lexmark’s corporate headquarters” in Lexington, Kentucky as part of the deal.

In turn, David Reeder, former Lexmark Vice President and CFO, is the new President and CEO, replacing Paul Rooke, while Lexmark’s Enterprise Software group “will be separated from Lexmark and rebranded” as Kofax, with both Lexmark and the consortium to “engage in a process to sell the business while focusing on growing the imaging business, particularly in China and the Asia-Pacific region”.

Rooke stated: “We are excited to have completed the transaction, which provides significant cash value to our shareholders, benefits our customers and provides new opportunities for our employees. I have had 25 fantastic years at Lexmark, the last six as chairman and chief executive officer. As the company enters its next phase, it is time for the next generation of leadership to continue the work to ensure Lexmark’s industry leadership.

“David Reeder is an extraordinary leader and has spent his entire career in technology. Since joining Lexmark, David has worked closely with me on transforming the business, and I believe he is well equipped to continue Lexmark’s transformation for our customers and employees.”LexmarkLogo_RGB_300

Reeder added: “I’m incredibly excited about Lexmark’s future. Lexmark has employees across the globe who are truly passionate about technology and helping customers better manage their imaging and output needs. We are now uniquely positioned to grow the company in China and greater Asia, along with continuing to deliver industry-leading products and services to customers in other regions of the world. I’m honoured to lead Lexmark into its next phase of opportunities and growth.”

Lexmark revealed earlier this year that the merger had been approved by shareholders, though it “remain[ed] subject to certain regulatory approvals”, such as the CFIUS, as well as “other customary closing conditions”, though the CFIUS later approved it. The merger had been expected to be completed in the second half of the year, despite The Recycler reporting earlier this year that Lexmark employees were attempting to block the deal.

The OEM had also previously discussed the merger and what it meant, while a host of law firms had started investigations into the deal. Sources had claimed that the Chinese consortium aimed to “shop” Lexmark’s software business, adding that Apex and PAG Asia Capital had been “exploring a sale” and were “in talks with a number of private equity firms”.

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