Lexmark International, Inc. is a privately held American company that manufactures laser printers and imaging products. The company is headquartered in Lexington, Kentucky. Since 2016 it has been jointly owned by a consortium of three Chinese companies: Apex Technology, PAG Asia Capital, and Legend Capital.
|Predecessor||IBM Information Products Corporation|
|Founded||March 27, 1991|
|Headquarters||Lexington, Kentucky, United States|
|Phillip Cassou (Chairman)|
Allen Waugerman (President & CEO)
|Revenue||US$3.711 billion (2014)|
|US$149.2 million (2014)|
|US$79 million (2014)|
|Total assets||US$3.633 billion (2014)|
|Total equity||US$1.281 billion (2014)|
Number of employees
|9,000 (Jul 2018)|
Lexmark was formed on March 27, 1991 when investment firm Clayton & Dubilier completed a leveraged buyout of IBM Information Products Corporation, the printer, typewriter, and keyboard operations of IBM. Lexmark became a publicly traded company on the New York Stock Exchange on November 15, 1995.
It was reported in April 2016 that Lexmark would be acquired by Apex Technology and PAG Asia Capital for US$3.6 billion. Lexmark was set to be acquired at $40.50 per share in the transaction. Initial talks for the acquisition were begun at the Remax World Expo in 2015. The deal was closed on November 29, 2016. Lexmark stated that its headquarters would remain in Lexington, and that its enterprise software line of business would be spun off and "rebranded" to Kofax. As part of the sale, the Perceptive Business Unit portion of Lexmark's Enterprise Software Services division (e.g. their non-Kofax branded document management products) was sold to the Thoma Bravo management group who agreed to in-turn sell the Perceptive Business Unit to the Hyland Corporation. The Kofax branded applications remained as part of Lexmark, but other document management systems like Perceptive Content and NolijWeb and products like Intelligent Capture (formerly "Brainware") and Enterprise Search (formerly "ISYS") were absorbed by Hyland.
The firm's corporate headquarters is located in Lexington and R&D offices are distributed globally with additional R&D facilities located in Boulder, Colorado, US; Lenexa, Kansas, US; Cebu, Philippines; Kolkata, West Bengal, India; Berlin, Germany; Stockholm, Sweden and Irvine, California, US. Lexmark has offices throughout North and South America, Asia, Africa and Europe. As of July 2018, the company had approximately 9,000 employees worldwide.
- In May 2010, Lexmark acquired Perceptive Software for $280 million to build upon its software offerings. Perceptive Software was a software firm that developed enterprise content management ("Perceptive Content", ″ImageNow") and document output management applications.
- In 2011, Lexmark International purchased Netherlands-based Pallas Athena in a cash transaction valued at approximately $50.2 million. The purchase of Pallas Athena added business process management, document output management and process mining software capabilities to Lexmark's services.
- In March 2012, Lexmark announced the acquisition of Luxembourg-based BDGB Enterprise, including its U.S. subsidiary Brainware, Inc., for a cash purchase price of approximately $148 million. Brainware's intelligent data capture platform extracted critical information from paper and electronic documents, validated the extracted data and passed it to customers' data management systems, enterprise resource planning (ERP) and/or financial management systems.
- In March 2012, Lexmark acquired Australia-based ISYS Search Software and U.S.-based Nolij Corporation, both for $32 million. ISYS built enterprise search solutions[buzzword] and Nolij developed Web-based document imaging and workflow software.
- In January 2013, Lexmark acquired Minnesota-based Acuo Technologies for $45 million. Acuo Technologies developed medical imaging document management software.
- In March 2013, Lexmark announced acquisitions of AccessVia and Twistage for a combined purchase price of approximately $31.5 million.
- In late August 2013, Lexmark signed an agreement to acquire Germany-based Saperion AG. Saperion was a developer and provider of enterprise content management and business process management (BPM) software in Europe. The company was purchased for $72 million.
- In early October 2013, Lexmark acquired PACSGEAR, a provider of connectivity solutions[buzzword] for medical image management and electronic health records. The company was purchased for approximately $54 million.
- In September 2014, Lexmark acquired Stockholm, Sweden-based ReadSoft for $251 million. ReadSoft was a financial process automation solutions[buzzword] company that specialized in software solutions[buzzword] for document process automation on-premises or in the cloud.
- In May 2015, Lexmark announced that it had acquired Kofax for roughly $1 billion. Kofax, headquartered in Irvine, California, US was a provider of smart process applications. They combined capture, process management, analytics and mobile capabilities to organizations. This line of business was, in turn, spun off from Lexmark when it was acquired by Apex Technology in November 2016.
In August 2012, Lexmark announced that it would stop production of its inkjet printer line. Lexmark will continue to provide service, support and aftermarket supplies for its inkjet installed base.
In April 2013, Funai Electric Company, Ltd. announced that it had signed an agreement to acquire Lexmark's inkjet technology and assets for approximately $100 million (approximately ¥9.5 billion). Funai acquired more than 1,500 inkjet patents, Lexmark's inkjet-related research and development assets and tools, all outstanding shares and the manufacturing facility of Lexmark International (Philippines), Inc., and other inkjet-related technologies and assets.
A court victory in 2005 was handed to Lexmark in the case of ACRA v. Lexmark. This case states that Lexmark can enforce the "single use only" policy written on the side of Lexmark printer cartridge boxes sold to certain large customers at a discount, with the understanding that the customers will return the cartridges to Lexmark after using them. This means that these customers can face lawsuits if they breach the agreements, and do not return the cartridges.
Also in 2005, Lexmark suffered a legal defeat in the case of Arizona Cartridge Remanufacturers Ass'n Inc. v. Lexmark International Inc., when the U.S. Supreme Court rejected Lexmark's petition for a writ of certiorari, thereby rejecting their attempt to have the Court hear their case. In this case, the defendant was a manufacturer of microchips that allowed third-party ink and toner cartridges to work on printers, including many manufactured by Lexmark. Such printers incorporated a feature that would require authentication from a microchip within the ink/toner cartridge in order to function; this was designed to prohibit users from refilling the cartridges. However, a recent firmware update allowed Lexmark to prevent end users from refilling ink cartridges or using third-party ink cartridges.
Lexmark also lost in the Supreme Court case Impression Products, Inc. v. Lexmark International, Inc. in 1 7-1 ruling that reversed and remanded a Federal Circuit court decision (30 May 2017):
When a patentee chooses to sell an item, that product is no longer within the limits of the monopoly and instead becomes the private, individual property of the purchaser, with the rights and benefits that come along with ownership. A patentee is free to set the price and negotiate contracts with purchasers, but may not, by virtue of his patent, control the use or disposition of the product after ownership passes to the purchaser. The sale terminates all patent rights to that item.
- "2014 Form 10-K, Lexmark International, Inc". United States Securities and Exchange Commission.
- "Printer company Lexmark plans about 1,000 layoffs". SFGate. July 18, 2018. Retrieved August 3, 2018.
- Natarajan, Sridhar; Ronalds-Hannon, Eliza; Chan, Cathy (April 3, 2018). "Two Years After Chinese Buyout, Lexmark Bonds Show Junk Risk". Bloomberg. Retrieved November 15, 2018.
- Lexmark (November 29, 2016). "Lexmark announces completion of acquisition by Apex Technology and PAG Asia Capital". Retrieved November 15, 2018.
- "Lexmark celebrates history of excellence, innovation at 20-year anniversary". PR Newswire. March 27, 2011.
- "Customs Ruling HQ 544887". U.S. Customs and Border Protection. October 2, 1992. Archived from the original on March 21, 2016. Retrieved October 12, 2014.
- "Lexmark International Group 1996 annual report, SEC Form 10-K". Advameg. March 24, 1997.
- "IBM Archives: 1991".
- Lewis, Peter H. (December 22, 1991). "The Executive Computer; Can I.B.M. Learn From a Unit It Freed?". The New York Times.
- "LXK stock quote - Lexmark International, Inc. stock price". NASDAQ.com. Retrieved April 22, 2013.
- "Details Disclosed for Lexmark Acquisition Deal". RT Recycling Times. April 21, 2016. Retrieved June 12, 2016.
- "Former Lexmark Executive Reveals Deal with Ninestar-Apex". RT Recycling Times. April 20, 2016. Retrieved August 15, 2016.
- Truman, Cheryl (November 29, 2016). "Lexmark acquisition completed: Rooke out, company exits software business". Lexington Herald-Leader. Retrieved January 28, 2017.
- "Hyland Software agrees to acquire Lexmark's Perceptive portfolio". Cleveland.com.
- Hein, Jen (May 3, 2017). "Hyland, creator of OnBase, has entered definitive agreement to acquire the Perceptive portfolio". Retrieved December 12, 2020.
- "Lexmark 2014 Annual Report". Lexmark International, Inc. Retrieved January 19, 2016.
- "About Us - Kofax". Retrieved January 19, 2016.
- "Lexmark Newsroom - News Releases". Newsroom.lexmark.com. May 21, 2010. Retrieved April 22, 2013.
- "Lexmark acquires Pallas Athena - LEXINGTON, Ky., Oct. 18, 2011 /PRNewswire/". Prnewswire.com. Retrieved April 22, 2013.
- "Lexmark acquires Brainware - Mar 5, 2012". Newsroom.lexmark.com. Retrieved April 22, 2013.
- "Lexmark acquires ISYS Search Software and Nolij - Mar 19, 2012". Newsroom.lexmark.com. Retrieved April 22, 2013.
- "Lexmark acquires Acuo Technologies - Jan 2, 2013". Newsroom.lexmark.com. January 2, 2013. Retrieved April 22, 2013.
- "Lexmark acquires Twistage and AccessVia". Newsroom.lexmark.com. March 5, 2013. Retrieved September 21, 2013.
- "Lexmark announces agreement to acquire Saperion". Retrieved January 19, 2016.
- "Lexmark acquires PACSGEAR". Retrieved January 19, 2016.
- Big acquisition brings Perceptive Software opportunity and layoffs Bizjournals.com, September 19, 2014
- "Even Better Invoice Processing. ReadSoft is now Lexmark". Retrieved January 19, 2016.
- "Lexmark completes acquisition of Kofax, announces Enterprise Software leadership change". Retrieved January 19, 2016.
- "Lexmark announces restructuring". Lexmark. August 28, 2012. Retrieved August 28, 2012.
- "Lexmark to exit inkjet printer market". pcpro.co.uk. August 28, 2012. Retrieved August 28, 2012.
- "Lexmark announces restructuring". Newsroom.lexmark.com. August 28, 2012. Retrieved April 22, 2013.
- "Funai acquiring Lexmark's inkjet-related technology and assets". Newsroom.lexmark.com. April 1, 2013. Retrieved September 21, 2013.
- Duan, Charles (October 21, 2016). "How a Printer Company Redefined Ownership; Lexmark's strategy has changed the rules about what you can do with something you 'bought.'". Slate. Retrieved October 22, 2016.
- Impression Products, Inc. v. Lexmark International, Inc., 30 May 2017
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