Xerox has reached a deal to acquire printing company Lexmark. The $1.5 billion sale is expected to close in the second half of next year.

Xerox says the acquisition will strengthen its core print portfolio and make it better suited to meet the needs of a hybrid workplace. 

“Our acquisition of Lexmark will bring together two industry-leading companies with shared values, complementary strengths and a deep commitment to advancing the print industry to create one stronger organization,” said Steve Bandrowczak, chief executive officer at Xerox. “By combining our capabilities, we will be better positioned to drive long-term profitable growth and serve our clients, furthering our Reinvention.”  

Lexmark, based in Kentucky, is another well-known name in the printing industry.

"Make no mistake, this isn't just about growing in size — it's about getting better and stronger," said Lexmark President and CEO Allen Waugerman. "We're combining our expertise to accelerate innovation and deliver faster development cycles, more advanced features, and a world-class printing experience. We're committed to empowering businesses of all sizes to thrive in today's digital world."

Lexmark says the merger will allow the companies to serve more than 200,000 customers in 170 countries around the world.

Xerox says it will use a mix of cash and debt financing to make the purchase.