Lexington, Ky. – Lexmark International, Inc. is exploring strategic alternatives to enhance shareholder value, as its current share price doesn’t reflect the value of company.
The company’s board of directors has formed a committee of independent directors to assist in the process, and is working with investment banking company Goldman Sachs.
“We are extremely proud of what the Lexmark management team and employees have accomplished in the transformation of Lexmark,” said Jean-Paul Montupet, lead director of the Lexmark Board of Directors. “While the Board is encouraged by the company’s future prospects, the Board does not believe Lexmark’s current share price fully reflects the intrinsic value created by the company, and the Board has concluded it is appropriate to explore strategic alternatives as the next step to unlock this value.”
The Lexington, Ky.-based company makes printers, enterprise software and other hardware. According to a release from the company, Lexmark has “built a $3.7 billion global technology company that includes a $1.5 billion Higher Value Solutions business comprised of Enterprise Software and Managed Print Services.”
Lexmark says it 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.
An article in the Wall Street Journal, citing people familiar with the matter, says an alternative includes a possible sale of the company to other technology companies.