LXK - Lexmark International

[valueinvesting101]

Lexmark agrees to be acquired by Apex Technology and PAG Asia Capital

 

• All-cash transaction valued at approximately $3.6 billion, or $40.50 per share

• Announcement follows an exhaustive strategic alternatives review process focused on maximizing shareholder value

 

Apex Technology received notice from Cfius (The Committee on Foreign Investment in the United States) saying its review of Lexmark buyout will conclude no later than Sept. 29, buyer says in statement to Shenzhen stock exchange.

 

Lexmark business has two components:

 

Hardware business resolves around multi-purpose photocopy and print machines.

Enterprise Software business to manage document workflow from paper world into digitization.

 

Employee of Lexmark sent letter to Obama trying to block merger on security grounds.

 

More details:

http://wirthconsulting.org/2016/05/16/lexmark-employees-seek-to-block-apex-acquisition-citing-u-s-national-security-concerns/

 

There is also concern about DHS and DOJ being clients of Lexmark.

 

Any past information about Chinese takeover of US tech companies?

 

IBM Lenovo deal was approved which should have had larger concerns.

 

Spread on current price of Lexmark to merger price is quite attractive.

 

Takeover of Opera Software fell through but alternative deal was hatched.

http://www.reuters.com/article/us-opera-software-m-a-china-idUSKCN0ZY0CA

 

I see similar alternative in case this deal falls through.

 

 

 

[valueinvesting101]

Sale was approved by CIFUS and stock has soared:

 

http://www.marketwatch.com/story/lexmarks-stock-soars-after-cfius-clears-buyout-by-chinese-consortium-2016-09-30