Apex Technology Co Ltd of Zhuhai, together with Pacific Alliance Group (PAG) and Legend Capital, acquired printer-maker Lexmark International Inc for $3.9 billion on Nov 30.
Acquisition of the Lexington, Kentucky firm was settled after 13 months of negotiations which started in 2015 at the Remax World Expo in Zhuhai.
Lexmark International Inc is a world-leading printing products and services provider, offering laser printers, printing supplies, components, software, and services. It separated from IBM in 1991 and listed on the New York Stock Exchange in 1995. The company’s innovative printing products and business process solutions have been sold in more than 170 countries during the past 25 years, mainly encompassing high-end laser printers and document management solutions.
A leader in printing management, Lexmark has large-scale clients in finance, logistics, and health care, covering global multi-national businesses. It has strong technical strength in laser printing with over 2,000 patent technologies.
Lexmark’s annual revenue last year was $3.55 billion or 23 billion yuan, compared to Apex’s revenue of 2 billion yuan ($297 million). By the end of last year, Lexmark assets totaled almost $4 billion, whereas Apex reported 3 billion yuan ($453 million).
Celebrating screen at Apex headquarters
Lexmark sustained business distress due to purchasing a software patent worth $2 billion. This move made profit fall from $517 million in 2014 to a deficit of $261 million in 2015. It issued the selling intent last October and Apex won after beating many strong rivals and passing strict scrutiny of the United States.
Apex collected purchase funds by integrating several financing methods, such as merger and acquisition, private placement introduction, strong stock holder loan, share pledge, and EB private enlisting.
Apex, which is located on North Mingzhu Road in Qianshan, Xiangzhou District, changed its name from Zhuhai Wanlida Electric Automation Co Ltd to Apex Technology Co Ltd on Dec 16, 2014. Listed on the Shenzhen Stock Exchange, its main business includes research, production, and sale of integrated circuit chips, universal printing supplies and core components, as well as renewable printing items. It has been engaged in providing best printing service solutions as a leader of world’s compatible printing supplies and accessories. Pantum Electronics, managed by an Apex shareholder, is China’s only specialized company researching, developing, and marketing laser printers and printing solutions.
Lexmark banner at Apex headquarters [Photos courtesy Zhuhai Daily]
Industry insiders predict that, driven by the successful acquisition by the country’s only laser printer manufacturer, Zhuhai, the Print Consumables Capital of the World, is to become a global “printer manufacturing capital”.