April 7, 2016
Reuters reported on the developments, which came from “people familiar with the matter”, outlining that Apex “is in negotiations to acquire” Lexmark in a deal that “represents an opportunity for Lexmark to sell itself as a whole”, after its attempts to sell the “software and hardware assets separately” and an “earlier auction” didn’t amount to “satisfactory offers”.
The news outlet’s source also noted that while Lexmark “sees Apex’ approach as promising, it needs assurances that the Chinese company will be able to close the deal”, with Apex executives set to visit Lexmark counterparts in the USA this month “to try to reach an agreement”. Apex is also working alongside both a US investment bank and “some Chinese banks” have already backed it, but sources cautioned “there was no certainty that a deal with Lexmark would materialise”.
Due to the “confidential” negotiations, the sources “asked not to be identified” by Reuters, while Lexmark refused to comment and Apex representatives “did not respond to requests for comment”. The news site also discussed Lexmark’s struggle to “adjust as its corporate clients cut costs and consumers shift to mobile devices from personal computers”.
Recent claims from “insiders” had suggested Lenovo was looking to acquire Lexmark, with the two said to be negotiating alongside Goldman Sachs, the investment bank hired by Lexmark last October to “explore strategic alternatives”, and the OEM pointed out at the time that these could include “a sale of the entire company or the spinoff of part of the company to either strategic or financial buyers”.
The most recent rumours had suggested that either Canon or Ricoh would buy the OEM’s hardware business, after The Recycler reported the OEM has already “received initial bids” for its software unit, while in January this year, it was rumoured Konica Minolta was looking to buy Lexmark. 550 jobs – or about four percent of its worldwide workforce – were also announced to be cut in February after poor quarterly results. Apex meanwhile acquired Static Control, the largest manufacturer of aftermarket imaging systems and components, last year.
Categories : World Focus