Report: Lexmark considering break-up of its assets
Sources say that separate sale of software and hardware assets will help meet value expectations
Lexmark International is looking at options that could see it sell of its hardware and software assets separately, according to a Reuters report based on conversations with people familiar with the matter.
The print services company announced last year that it was exploring "strategic alternatives", and that this could include an outright sale of the firm. Lexmark said at the time that it had appointed Goldman Sachs to advise it on future options.
However, according to the report, any offers about an outright purchase have not met Lexmark's value expectations. The company has reportedly spoken to a number of potential buyers since October last year.
It is thought that, in light of this, Lexmark is considering splitting off its hardware and software assets, and selling them separately, in order to meet its value expectations.
Either way, according to the report, the company has not decided on what it will do going forward, and has refused to comment on these rumours.
"Lexmark does not intend to comment on the exploration process or disclose further developments until the board approves a specific transaction or otherwise concludes the exploration of strategic alternatives," the Lexmark said in a statement.
While its main business is based on the sale of hardware related to print services, Lexmark has sought to diversify its business offerings over the past few years. It currently has a market capitalisation of about $1.74bn, and has recently pursued an aggressive acquisition strategy.