Lexmark

Lexmark International, Inc.

Logo used 2015-present
Type	Public
Traded as	NYSE: LXK S&P 400
Industry	Business process management Document management system Enterprise Content Management Managed Print Services Enterprise output management Printers
Predecessor	Printer and printer supply operations of IBM
Founded	1991
Headquarters	Lexington, Kentucky, U.S
Area served	Worldwide
Key people	Dave Reeder (Chairman and CEO)
Products	Business process management Document management system Enterprise Content Management Managed Print Services Enterprise output management Printers Toner
Revenue	US$3.711 billion (2014)[1]
Operating income	US$149.2 million (2014)[1]
Net income	US$79 million (2014)[1]
Total assets	US$3.633 billion (2014)[1]
Total equity	US$1.281 billion (2014)[1]
Owner	PAG Asia Capital
Number of employees	12,700 (December 2014)[1]
Parent	Apex Technology
Website	www.lexmark.com

Lexmark International, Inc. is an American corporation that manufactures laser printers and provides enterprise software. The company is headquartered in Lexington, Kentucky, in the United States.

History

Lexmark Headquarters, Lexington, KY

Lexmark was formed on March 27, 1991 when IBM divested a number of its hardware manufacturing operations, including printer and printer supply operations, to the investment firm Clayton, Dubilier & Rice, Inc. in a leveraged buyout.^[2][3][4][5] Lexmark became a publicly traded company on the New York Stock Exchange on November 15, 1995.^[6]

It was reported in April 2016 that Lexmark would be acquired by Apex Technology and PAG Asia Capital for $3.6 billion USD. Lexmark was set to be acquired at $40.50 per share in the transaction.^[7] Initial talks for the acquisition were begun at the Remax World Expo in 2015.^[8] The deal is expected to close in the second half of 2016. Lexmark has stated that "it intends to remain headquartered in Lexington, Kentucky."^[9]

Operations

The firm's corporate headquarters is located in Lexington and research and development (R&D) offices are distributed globally with additional R&D facilities located in Boulder, Colorado; Lenexa, Kansas; Cebu, Philippines; Kolkata, West Bengal, India; Berlin, Germany; Stockholm, Sweden^[10] and Irvine, California.^[11] Lexmark has offices throughout North and South America, Asia, Africa and Europe. The company has more than 12,000 employees worldwide.

Acquisitions

• In May 2010, Lexmark acquired Perceptive Software for $280 million to build upon its software offerings.^[12] Perceptive Software was a software firm that developed enterprise content management (ECM) and document output management (DOM) applications.
• In 2011, Lexmark International purchased Netherlands-based Pallas Athena in a cash transaction valued at approximately $50.2 million.^[13] The purchase of Pallas Athena added business process management (BPM), document output management (DOM) 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.^[14] 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.^[15] ISYS built enterprise search solutions 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.^[16]
• In March 2013, Lexmark announced acquisitions of AccessVia and Twistage for a combined purchase price of approximately $31.5 million.^[17]
• In late August 2013, Lexmark signed an agreement to acquire Germany-based Saperion AG. Saperion was a developer and provider of enterprise content management (ECM) and business process management (BPM) software in Europe. The company was purchased for $72 million.^[18]
• In early October 2013, Lexmark acquired PACSGEAR. PACSGEAR was a provider of connectivity solutions for medical image management and electronic health records. The company was purchased for approximately $54 million.^[19]
• In September 2014, Lexmark acquired Stockholm, Sweden-based ReadSoft for $251 million.^[20] ReadSoft was a financial process automation solutions company that specialized in software solutions for document process automation on-premises or in the cloud.^[21]
• In May 2015, Lexmark announced that it had acquired Kofax for roughly $1 billion.^[22] Kofax, headquartered in Irvine, California, was a provider of smart process applications. They combined capture, process management, analytics and mobile capabilities to organizations.^[11]

Inkjet exit

In August 2012, Lexmark announced that it would stop production of its inkjet printer line.^[23][24] Lexmark will continue to provide service, support and aftermarket supplies for its inkjet installed base.^[25]

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.^[26]

Legal cases

Lexmark pioneered the use of profits from ink cartridges as a business model, with the result of modifying the legal models of product ownership and patent exhaustion over several years.^[27]

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 Lexmark Int'l v. Static Control Components, 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. Yet a recent firmware update allowed Lexmark to prevent end users from refilling ink cartridges or using third-party ink cartridges.

See also

• List of Lexmark products

References

1. "2014 Form 10-K, Lexmark International, Inc.". United States Securities and Exchange Commission.
2. "Customs Ruling HQ 544887". U.S. Customs and Border Protection. October 2, 1992.
3. "Lexmark International Group 1996 annual report, SEC Form 10-K". Advameg. March 24, 1997.
4. "IBM Archives: 1991".
5. Lewis, Peter H. (December 22, 1991). "The Executive Computer; Can I.B.M. Learn From a Unit It Freed?". The New York Times. Retrieved May 7, 2010.
6. "LXK stock quote - Lexmark International, Inc. stock price". NASDAQ.com. Retrieved April 22, 2013.
7. "Details Disclosed for Lexmark Acquisition Deal". RT Recycling Times. April 21, 2016. Retrieved June 12, 2016.
8. "Former Lexmark Executive Reveals Deal with Ninestar-Apex". RT Recycling Times. April 20, 2016. Retrieved August 15, 2016.
9. "Printer-maker Lexmark snapped up for $3.6 billion". CNET. Retrieved April 20, 2016.
10. "Lexmark 2014 Annual Report". Lexmark International, Inc. Retrieved January 19, 2016.
11. "About Us - Kofax". Retrieved January 19, 2016.
12. "Lexmark Newsroom - News Releases". Newsroom.lexmark.com. May 21, 2010. Retrieved April 22, 2013.
13. "Lexmark acquires Pallas Athena - LEXINGTON, Ky., Oct. 18, 2011 /PRNewswire/". Prnewswire.com. Retrieved April 22, 2013.
14. "Lexmark acquires Brainware - Mar 5, 2012". Newsroom.lexmark.com. Retrieved April 22, 2013.
15. "Lexmark acquires ISYS Search Software and Nolij - Mar 19, 2012". Newsroom.lexmark.com. Retrieved April 22, 2013.
16. "Lexmark acquires Acuo Technologies - Jan 2, 2013". Newsroom.lexmark.com. January 2, 2013. Retrieved April 22, 2013.
17. "Lexmark acquires Twistage and AccessVia". Newsroom.lexmark.com. March 5, 2013. Retrieved September 21, 2013.
18. "Lexmark announces agreement to acquire Saperion". Retrieved January 19, 2016.
19. "Lexmark acquires PACSGEAR". Retrieved January 19, 2016.
20. Big acquisition brings Perceptive Software opportunity and layoffs Bizjournals.com, September 19, 2014
21. "Even Better Invoice Processing. ReadSoft is now Lexmark.". Retrieved January 19, 2016.
22. "Lexmark completes acquisition of Kofax, announces Enterprise Software leadership change". Retrieved January 19, 2016.
23. "Lexmark announces restructuring". Lexmark. August 28, 2012. Retrieved August 28, 2012.
24. "Lexmark to exit inkjet printer market". pcpro.co.uk. August 28, 2012. Retrieved August 28, 2012.
25. "Lexmark announces restructuring". Newsroom.lexmark.com. August 28, 2012. Retrieved April 22, 2013.
26. "Funai acquiring Lexmark's inkjet-related technology and assets". Newsroom.lexmark.com. April 1, 2013. Retrieved September 21, 2013.
27. 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.

External links

• Official website
• EFF: Lexmark v. Static Control Components Inc.