Did you get the whole picture about Lexmark Acquisition?

After reading and listening to some experts I came up with this infographic to explain why the US$ 3.6B Lexmark acquisition changes the market of the printing industry.
Lexmark Acquisition infographic top

Scroll down to see the full Lexmark Acquisition Infographics

 

Who are the players

Who are the players?

  • Apex

    Apex Technology Co., Ltd. is the world’s foremost supplier of aftermarket printer consumables. Based in Zhuhai, China.

  • Seine

    Zhuhai Seine Technology Co. Ltd. is the largest shareholder of Apex, holding approximately 68.7% of the voting shares of Apex. Seine also is the majority shareholder of Pantum International..

  • Pantum International.

    China’s first printer and printing solutions provider.

  • PAG

    PAG Asia Capital is the private equity buyout arm of PAG, one of Asia’s largest private equity firms. PAG currently has US$15 billion in capital under management.

  • Lexmark

    Lexmark (NYSE: LXK) is a recognized leader in imaging and printing solutions, as well as enterprise software, hardware and services.  The firm is based in Lexington, Kentucky.

 

Why?

Reasons

Lexmark sells printers and of course original ink and toner cartridges at a premium price.
Like the rest of OEMs, prosecutes aftermarket manufacturers patent infringement making their life hard specially in the western world.
Apex see the opportunity to buy a market share, supply cartridges at a premium price and sing the peace in court at least with one EOM.

In short they gain:
- Increase profitability.
- Market share
- Peace in court

Conclusion:

The small fish eating the big one.

What it used to be small it's not small anymore. This is a big step in the industry and I think it will disrupt the market in a way that may surprise us.

It's also a new proof that the Asian power is taking over the old western world. I'm sure this is not the last move of the China based industry over the printing market.    

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Lexmark Acquisition explained infographics

Special thanks to rechargeasia.com

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