NORWALK, Conn. - In a strategic move following its acquisition of Lexmark International, Inc., Xerox Holdings Corporation (NASDAQ: XRX) has announced the appointment of two key Lexmark executives to its Executive Committee. The company, which has seen a significant 12% return over the past week according to InvestingPro data, has named Kim Kleps as Chief People Officer, effective immediately.
The two executives from Lexmark joining the Xerox leadership are Billy Spears, assuming the role of Chief Product Development & Delivery Officer, and Chuck Butler, stepping in as Chief Business Services Officer. Their appointments are anticipated to be instrumental in steering the future direction of the combined entity, especially as Lexmark’s imaging solutions and technologies are incorporated into Xerox’s portfolio.
Xerox CEO Steve Bandrowczak expressed enthusiasm about the new additions, emphasizing the importance of their experience and strategic vision in driving innovation and growth for the company. He remarked on the significance of this development in building a more dynamic organization that will redefine possibilities in print, digital, and IT services.
The acquisition deal, which is valued at $1.5 billion, is expected to be finalized in the third quarter of 2025, pending regulatory approvals and customary closing conditions. Based on InvestingPro’s Fair Value analysis, Xerox is currently fairly valued. The merger is set to expand Xerox’s reach, serving an extensive client base across over 170 countries with a comprehensive range of services. The company maintains an impressive 8.4% dividend yield and has sustained dividend payments for 19 consecutive years.
Bandrowczak highlighted the goal of the expanding leadership team to deliver unmatched technology solutions globally. He underscored the synergy between the companies, which aims to enhance operational efficiencies and open new opportunities for clients and partners.
Xerox, with a history spanning over a century, has been at the forefront of workplace innovation. The company’s services-led, software-enabled approach, coupled with advanced AI-driven technologies, supports businesses in navigating digital transformation and achieving operational excellence.
This press release statement contains forward-looking statements, including expectations and assumptions regarding the company’s future performance and technology. However, these statements are subject to various risks and uncertainties that could cause actual results to differ materially from the anticipated outcomes.
In keeping with the company’s commitment to innovation, the integration of Lexmark is poised to further Xerox’s legacy as a leader in digital and print technology solutions for the evolving global workforce. While current financials show challenges with a negative earnings period, InvestingPro analysts project a return to profitability this year. For deeper insights into Xerox’s financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively to InvestingPro subscribers, along with 8 additional ProTips and extensive financial metrics.
In other recent news, Xerox Holdings Corporation reported a challenging first quarter of 2025, with earnings and revenue falling short of expectations. The company posted an adjusted loss per share of $0.06, missing the forecasted earnings per share of $0.10, and reported revenue of $1.46 billion, which fell short of the expected $1.54 billion. Despite these results, Xerox maintained its full-year 2025 guidance, highlighting efforts to mitigate tariff risks by relocating production from China to countries with lower tariffs. Additionally, the company is seeing early benefits from its integration of ITsavvy, which are exceeding initial expectations.
Xerox has also completed a private offering of $100 million in 13.500% Senior Secured Second Lien Notes due 2031, which will help fund the acquisition of Lexmark International II, LLC. This acquisition is in its final stages, pending regulatory approval from China, and is expected to be immediately accretive. Loop Capital recently adjusted its price target for Xerox shares, reducing it to $4.50 from $5.50, while maintaining a Hold rating, following the company’s mixed first-quarter earnings report. The report noted a 1.1% constant currency decline in revenue but also highlighted a 33% growth in entry-level installations, indicating strength in the A4 segment.
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