EXCLUSIVE: Is Lenovo set to buy Lexmark?
According to insider the world’s #1 PC Company is currently in discussions with the US based printer manufacturer Lexmark to acquire the Company who is currently retrenching staff globally.
Recently the struggling printer Company said that they plan to shed more than 1000 jobs over the next few months. ChannelNews understands that Lenovo is negotiating with Lexmark management and Goldman Sachs.
Lenovo who has a reputation for buying up distressed businesses has in the past acquired the IBM Think Pad business, the IBM server business and Motorola. The aquisition of Lexmark would put pressure on Lenovo arch rival Hewlett Packard.
Insiders claim that that the acquisition of Lenovo would be a “logical fit” for the Chinese Company who during the past six months have grown their share of the Australian PC and server markets.
One source said overnight” A deal between Lexmark and Lenovo would make a lot of sense, Lenovo are very good business operators. They have the relationships and the distribution channels and a host of compatible products”.
ChannelNews has been told that earlier this year, a major global Company approached Lexmark in the USA, to do a business deal. Shortly after the deal was agreed in principle, Lexmark management rescinded the deal claiming that Lexmark was in discussions with Lenovo and that the deal could not go ahead”.
During the company’s second-quarter 2015 earnings call in July, CEO Paul Rooke said Lexmark would cut 500 people worldwide at that time and, during its fourth-quarter and year-end earnings call last month, announced it would drop another 550.
In October, Lexmark said in a statement that it had hired Goldman Sachs to “explore strategic alternatives.” In the company’s earnings call for the third quarter of 2015, Lexmark officials said those alternatives could include a sale of the entire company or the spinoff of part of the company to either strategic or financial buyers.
“The board does not believe Lexmark’s current share price fully reflects the intrinsic value created by the company, and the board has concluded it is appropriate to explore strategic alternatives as the next step to unlock this value,” Jean-Paul Montupet, lead director of Lexmark’s board, said in the statement.
“Lexmark is getting ready for a sale,” said Stewart, who added that the company has been rushed into selling itself following a “series of strategic missteps.”