Lexmark Agrees To Be Acquired By Apex-led Consortium In $3.6 Bln Deal

(RTTNews) - Lexmark International Inc. (LXK), a computer-printer maker, said Tuesday that it has entered into a definitive merger agreement with a consortium of investors led by Apex Technology Co., Ltd. and PAG Asia Capital under which Lexmark will be acquired for $40.50 per share in an all-cash transaction with an enterprise value of approximately $3.6 billion, net of cash. Legend Capital Management Co., Ltd. is also a member of the Consortium.

Upon the close of the transaction, Lexmark's common stock will cease to be publicly traded on the New York Stock Exchange.

The transaction has been unanimously approved by Lexmark's Board of Directors and represents a 30 percent premium to Lexmark's undisturbed closing stock price on October 21, 2015, the date prior to the news of Lexmark's exploration of strategic alternatives becoming public.

The Consortium intends to maintain Lexmark's corporate headquarters in Lexington, Ky. Paul Rooke, chairman and chief executive officer of Lexmark, is expected to continue to lead Lexmark after the transaction closes.

Lexmark's two business groups, Imaging Solutions and Services and Enterprise Software, as well as the company's regional and country operations, are expected to continue unaffected and benefit strategically and financially from the transaction.

The merger will be financed through equity contributions by the Consortium and debt financing. The merger is not subject to a financing condition.

The merger, which is expected to close in the second half of 2016, is subject to approval by Lexmark shareholders, regulatory approvals in the U.S., including the Committee on Foreign Investment, China and certain other foreign jurisdictions, and other customary closing conditions.

Lexmark's Board of Directors also declared its regular quarterly cash dividend of $0.36 per share of Lexmark Class A Common Stock. The dividend is payable on June 17, 2016, to shareholders of record as of the close of business on June 3, 2016.

LXK closed Tuesday regular trading at $34.66, up $0.34 or 0.99 percent. In the after-hours trading, the stock further gained $3.91 or 11.28 percent.