Xerox Acquires Lexmark: A Study of the Overlap in Their Indirect Sales Channels

In a sluggish market, it is ultimately not HP Inc. but Lexmark that Xerox has chosen, or been able, to swallow. In either case, it is interesting to see how their two sales channels complement or overlap each other.
With the help of the compuBase partner database, which covers a large part of the printing sector, we conducted a quick analysis of their synergies.


Foreword

This study focuses on the EMEA, North America, and LATAM geographic regions. The data is drawn from a database of over 12,500 partners working with one or the other of these brands, although, in reality, the sales channels of these two companies are much larger. However, we estimate that the partners listed in our database account for at least 80% of revenues in EMEA and North America. In the Print segment, all products are taken into account, including Managed Print Services.
Finally, this study is unsponsored.
This study focuses on the common partners between Xerox and Lexmark. If you would like a deeper analysis of Xerox or Lexmark individually, we recommend consulting the following pages. - Xerox Channel only
- Lexmark Channel only

Size of the sales channels and overlap

Xerox Lexmark channel overlap
Before the acquisition announcement in December 2024, it is difficult to determine precisely which of the two companies, Xerox or Lexmark, was more profitable, as Lexmark was a private company and did not publish its financial results. However, it is notable that Xerox, despite having a market capitalization of around $1 billion, decided to acquire Lexmark for $1.5 billion, which could indicate that Lexmark had strategic value or perceived superior profitability. Additionally, analysts suggested that Lexmark appeared to be a better-managed company with a more attractive exposure to growth markets and a stronger presence in distribution channels.
However, without public financial data from Lexmark, it is challenging to directly compare the profitability of the two companies.
This is why comparing the two distribution networks provides an interesting added value to put this acquisition into perspective. The first thing to note is that Lexmark has a greater number of sales points than Xerox. If well managed, this acquisition could allow Xerox to expand its market coverage for its products and solutions. 

Overlap in sales channels between Xerox and Lexmark theoricaly

Total printing market and Xerox - Lexmark coverage
To study the overlap in sales channels, we looked at the number of partners in common, compared to the total number of partners in the segment in question. Today, one in two Xerox partners also distributes Lexmark products, whereas for Lexmark, one in three partners distributes Xerox products.
All together the both brands cover 31% of the printing channel (in volume of partners not in value). We will see later in this study that on paper this would provide theoretically the best position on the printing market.

Geographical areas

* The compuBase database is somewhat less representative in Latin America and AU-NZ than in other regions.
From a geographical perspective, overlap varies from 9% to 35%, peaking in Eastern Europe, UKI. It is at its lowest in MEA.

Overlap based on partner size

The segment of partners with the highest overlap is the 10-24 employees segment. For the segment with more than 500 employees, the overlap is also significant, but the small number of partners reaching this size makes the analysis of this segment less robust.

Overlap by target customer

With respect to client targets based on their size, it is noticeable that the level of overlap is proportional to the size of the targeted customers, reaching its maximum with the largest companies. In the next chart, we will explore which verticals show the strongest overlap

Overlap in vertical markets

We can see that in the market segments with the strongest overlaps, the public sector or areas related to the public sector are very often represented (in red)

Overlap among competing Print brands

It is also very interesting to identify which brands in the industry are most impacted by Xerox's acquisition of Lexmark.
When two suppliers merge, it inevitably affects their distribution channels. For instance, a reseller will often aim to have a product range that spans all market segments while avoiding becoming single-brand, as a matter of caution, whenever this is contractually possible. This allows them to maintain competition, cover all price segments for a specific type of solution, and avoid missing sales opportunities due to stock shortages. Diversifying a product line is often a matter of sound management. Therefore, when one brand acquires another, it often creates an opportunity for existing brands in the market to "win" new partners.
We have chosen to focus specifically on the partners already distributing both brands, as we believe they are the most likely to make strategic decisions—either maintaining both brands or expanding their activity with another brand to reduce dependency on a single supplier.
Strategies will vary between brands. Those with limited presence among these resellers will have the greatest opportunity to gain new partners, while brands already working with Xerox-Lexmark partners will have the chance to expand their revenue.

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