US laser printer maker Lexmark explores strategic alternatives

US laser printer manufacturer and enterprise software provider Lexmark International Inc yesterday said that it was exploring strategic alternatives and had hired Goldman Sachs to advise it on the process.

The Lexington, Kentucky-based company that makes printing and imaging products, including laser and inkjet printers, said that its ''Board of Directors has authorised the exploration of strategic alternatives to enhance shareholder value.''

''The Board believes that Lexmark has created value through its actions to transform the company and believes that a full review of strategic alternatives, beyond the operational and financial actions the company has taken to date, is the next step to unlocking the intrinsic value created by the company.''

The company has formed a committee of independent directors to assist in exploring strategic alternative.

In 2012 Lexmark embarked on a plan to restructure the company to boost profitability by eliminating 1,700 jobs, shut its inkjet supplies manufacturing facility at Cebu in the Philippines by the end of 2015 and explore a sale of its inkjet technology (See: Lexmark International to axe 1,700 jobs, shut Philippines inkjet supplies facility)

Since 2010, Lexmark has gone on an acquisition spree and acquired about 14 companies. Its latest acquisition was made in March this year when it purchased software developer Kofax Ltd for about $1 billion.

It currently has a market value of $1.9 billion and debt of more than $1 billion.

Lexmark, which was formed in 1991 with IBM's divestiture of its printer and printer supply operations to investment firm Clayton & Dubilier.

It later expanded into printing solutions and services developed to run on a touch screen that is located on the printer that provides access to many software applications, thus reducingajthe complexities of manual paper processes

Lexmark's Enterprise Software has grown to an annualised revenue run rate of approximately $700 million and its Managed Print Services has seen revenue growth for each of the past 15 years.

It posted net profit of $79 million last year on revenue of $#3.7 billion.