Revenues Flat for Lexmark as Apex Technology Acquisition on the Horizon

new lexmark

In what will likely be the last time it reports earnings, Lexmark International today reported results for its third quarter of 2016 with third-quarter revenue of $844, down 1 percent versus third-quarter 2015, and net earnings of  $18.3 million, versus a loss of $15.2 million for third-quarter 2015.

Revenue for Lexmark’s Imaging and Solutions group (printer, copiers/MFPs, and related supplies and solutions) was relatively flat at $688 million, down 2 percent versus third-quarter 2015.

Apex Acquisition of Lexmark

Lexmark also reported that, regarding its upcoming acquisition by Apex Technology and a consortium of investors, that it received clearance from the Committee on Foreign Investment in the United States (CFIUS) to proceed with the proposed acquisition of Lexmark by Apex and others. The CFIUS found that there are “no unresolved national security issues associated with the proposed transaction.”

However, as a precondition to CFIUS clearance of the transaction, CFIUS required that the Apex and the consortium of investors enter into a National Security Agreement with the U.S. Departments of Defense and Homeland Security.

The acquisition of Lexmark by Apex and others remains subject to approval from China’s State Administration of Foreign Exchange (SAFE) and other customary closing conditions. Lexmark expects to close the transaction in 2016.

Lexmark also noted that it will no longer conduct quarterly conference calls while the transaction is pending. Once Lexmark is acquired, its stock will no longer be publicly traded on the New York Stock Exchange.

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