Xerox in Deal to Acquire Lexmark

Agreement values the closely held printer maker at $1.5 billion, including debt

- LAUREN THOMAS

Xerox Holdings has struck a deal for closely held Lexmark International that values the maker of printers and printing software at $1.5 billion, including debt.

Xerox's takeover of the business would bring Lexmark back under U.S. ownership. The company's current owners are printer maker Ninestar Corp. (formerly known as Apex Technology), listed in Shenzhen, China; private-equity firm PAG Asia Capital; and asset manager Shanghai Shouda Investment Centre.

Xerox is expected to finance the deal with a combination of cash on hand and committed debt financing.

Shares in Xerox, based in Norwalk, Conn., rose nearly 12.6% Monday to $9.45 a share. The company has a market value of a little more than $1 billion. Its share price has come under pressure in recent lower-than-exmonths from pected equipment sales.