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Apex to sell Lexmark software unit?

September 12, 2016

Sources have stated that the Chinese company aims to “shop” Lexmark’s software business after its merger goes through.apexlogo

Bloomberg Quint reported on the information from “people with knowledge of the matter”, adding that Apex and PAG Asia Capital – one of the investment firms involved in the merger between Apex and Lexmark – are “already exploring a sale” of Lexmark’s software division, and are said to be “in talks with a number of private equity firms”.

The sources, who “asked not to be identified because the information is private”, added that the new owners “are not using an external adviser to sell the software unit”, which could reach as much $1 billion (€888.4 million) in sales value. Bloomberg Quint added that a Lexmark spokesman “declined to comment on the software business”, and only noted that the company “continues to expect” that the merger will be agreed in the second half of the year.

Lexmark revealed earlier this year that the merger had been approved by its shareholders at a special shareholder meeting, where 70 percent of the “outstanding Lexmark shares were voted”, and of those that did, 99 percent “voted in favour of the merger”. It added however that the merger “remains subject to certain regulatory approvals”, such as the Committee on Foreign Investment in the United States (CFIUS), as well as “other customary closing conditions”.

The merger is 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.

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