...December 30, 2024 NEW YORK (S&P Global Ratings) Dec. 30, 2024--S&P Global Ratings today said it expects Xerox Holdings Corp.'s offer to acquire Lexmark International Inc. for $1.5 billion will lead to lower pro forma leverage and a stronger print business. As of Sept. 30, 2024, Xerox's S&P Global Ratings-adjusted pro forma leverage would improve to about 6.5x from about 7.4x on a stand-alone basis. We believe pro forma leverage could decrease to below 5x by the end of 2025 due to cost savings from the company's "Reinvention" transformation plan and perhaps early realized synergies from the acquisition, which we expect will close in the second half of 2025. At the same time, we believe there could be further execution risks for the company to successfully integrate Lexmark while it continues to implement its transformation plan. Xerox intends to realize at least $200 million of cost synergies within two years of closing, and over $400 million of incremental gross cost savings in 2025-2027...
