Secrets Being Revealed?

After such a major announcement as what occurred last week concerning Lexmark International being acquired by a consortium comprised of Apex Technology, PAG Asia Capital, and Legend Capital, a watcher of the imaging industry could surmise there must be a strategy behind all of this M&A activity. Some believe Lexmark’s recent buying spree of business software companies and digital document management services could be one of the reasons that attracted this consortium.

However, it has come to the surface that Lenovo was in advanced talks with Lexmark and the “concept of integrating another company” posed too great of a risk at this time. Lenovo has been working on ensuring the IBM server unit and Motorola smartphone business stay on track. Acquiring Lexmark would have been too much of a distraction. In spite of this, Legend Capital has a 30 percent stake in Lenovo and it is expected Lenovo will form a direct OEM arrangement with Lexmark to sell its printers in the Asia Pacific region. As with most Chinese M&A activity, there is always a ‘story behind the story.’

 

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