This article first appeared on GuruFocus.

Xerox a former tech star has come into hard times as its main print equipment business has been in a decade long secular decline. While the print equipment business is experiencing a secular decline due to the rapid move towards digitization, declining print volumes, and changing workplace needs, with traditional analog printing hit hardest. However, some areassuch as digital printing, packaging, and specialized print applicationsremain resilient and are even growing as businesses shift to more customized, automated, and value-added services.

The industry faces decreased revenues, consolidation, and workforce reductions, but those able to innovate through technology and adapt their offerings can still find opportunities within the shifting landscape.

The major players in the print equipment industry in 2025 include HP, Canon, Xerox, Brother, and Epson for general office and consumer printing equipment. HP is the largest in printer shipments and revenue, specializing in business and consumer solutions. Canon is known for broad office, production, and large-format print technologies. Xerox offers advanced printers, digital presses, and services with a global footprint. Brother and Epson maintain strong positions in office and industrial print with wide distribution globally.

Xerox acquired Lexmark International in July 2025 for $1.5 billion, consolidating two large players in the global print and managed print services industry to expand their market leadership and innovation capacity. The acquisition included Lexmark's net debt and assumed liabilities, and was financed by Xerox through a combination of cash on hand and debt financing. The purchase brings together Xerox's legacy in office photocopiers and managed print services with Lexmark's strengths in printers, imaging technologies, and enterprise solutions.

According to Xerox's management, this acquisition is expected to drive significant competitive advantages for Xerox, solidify its leadership in managed print services, and enhance its capabilities for workplace transformation across industries worldwide. Strategic Rationale for the Lexmark acquisition cited by Xerox is as follows.

Market Strengthening: Xerox now ranks among the top five in every major print segment and leads in managed print services globally, serving over 200,000 clients in 170 countries. Broader Portfolio: The combined entity offers a more comprehensive suite of print and digital workplace technologies, including Lexmark's A4 color products.