Lexmark considers breaking up: sources
- reported on Yahoo news
- Exploring divestment of hardware and software assets separately.
- Discussions with potential buyers for sale of entire company yielded no offers meeting valuation expectations.
- Considering divesting hardware and software assets separately to attract interest.
- Private equity firms engaging in talks regarding acquisition of either hardware or software assets.
- No final decision made; company yet to determine the path forward.
- Sources requested anonymity due to confidential nature of sale process.
- Lexmark declines to comment on exploration process until specific transaction is approved.
- Lexmark valued at $1.74 billion.
- Announced exploration of strategic alternatives in October; Goldman Sachs enlisted as adviser.
- Acquired Kofax Ltd for approximately $1 billion to bolster software services for business customers.
- Kofax acquisition expected to double size of enterprise software unit to $700 million business.
- Lexmark's software offers scanning and data services to various industries including banking, healthcare, insurance, and retail.
- Software business shows higher growth rate but constitutes a smaller portion of revenue compared to hardware business.