Lexmark To Explore Strategic Alternatives

(RTTNews) - Printer maker and enterprise services provider Lexmark International Inc. (LXK) said Friday that its board of directors had authorized the exploration of strategic alternatives to enhance shareholder value.

Lexmark said it believes that a full review of strategic alternatives, beyond the operational and financial actions taken by the company to date, is the next step to unlocking the intrinsic value created by the company. The board has formed a committee of independent directors to assist in the exploration of strategic alternatives.

Lexmark's board will be helped in the evaluation process by financial adviser Goldman, Sachs & Co., transaction and advisory services firm Ernst & Young LLP, and the law firm of Wachtell, Lipton, Rosen & Katz. Lexmark has a market capitalization of $2.03 billion.

Jean-Paul Montupet, lead director of Lexmark's board of directors said, "While the Board is encouraged by the company's future prospects, 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."

Lexington, Kentucky based Lexmark noted that it has built a $3.7 billion global technology company that includes a $1.5 billion Higher Value Solutions business, comprised of Enterprise Software and Managed Print Services.

Lexmark's enterprise software has grown to an annualized revenue run rate of about $700 million, while the company's managed print services has delivered revenue growth for each of the past 15 years.

In July, Lexmark reported a loss for the second quarter, noting that its 2015 restructuring negatively impacted reported pre-tax earnings by $32 million. The company also provided a weak earnings outlook for the third quarter at that time.

LXK is currently trading at $33.97, up $1.09 or 3.32 percent on a volume of 84,471 shares.