The audited consolidated financial statements of Lexmark, which comprise the consolidated statement of earnings for the fiscal years ended December 31, 2024 and 2023, the consolidated statements of comprehensive earnings for the fiscal years ended December 31, 2024 and 2023, the consolidated statements of financial position as of December 31, 2024 and 2023, the consolidated statements of cash flows for the fiscal years ended December 31, 2024 and 2023, the consolidated statements of member’s equity for the fiscal years ended December 31, 2024 and 2023 and the related notes thereto, are furnished as Exhibit 99.2 to this Current Report and are incorporated herein by reference.
The unaudited pro forma condensed combined balance sheet of Xerox as of December 31, 2024, the unaudited pro forma condensed combined statement of operations of Xerox for the twelve months ended December 31, 2024, each giving effect to the Lexmark Acquisition and the ITsavvy Acquisition and the related notes thereto, are furnished as Exhibit 99.3 to this Current Report and incorporated herein by reference.
In connection with the offerings, Xerox Corporation provided potential investors with additional information concerning its expectations for financing the Lexmark Acquisition, including its intention to replace the existing commitments in its debt commitment letter with Jefferies Finance LLC and Jefferies LLC with the First Lien Notes and the Second Lien Notes. Xerox Corporation also disclosed that it has identified an aggregate of approximately $238 million in expected gross
run-rate
synergies from the Lexmark Acquisition that it expects to realize within 24 months following completion of the acquisition.
The information contained in Item 7.01 of this Current Report and in Exhibits 99.1, 99.2 and 99.3 hereto is being furnished and shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be deemed incorporated into any registration statement or other filing under the Securities Act, or the Exchange Act, except as shall be expressly set forth by specific reference to such filing.
Forward-Looking Statements
This Current Report contains “forward looking statements” as defined in the Private Securities Litigation Reform Act of 1995 that involve certain risks and uncertainties. The words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “will”, “would”, “could”, “can”, “should”, “targeting”, “projecting”, “driving”, “future”, “plan”, “predict”, “may” and similar expressions are intended to identify forward-looking statements. The Company’s actual results may differ significantly from the results discussed in the forward-looking statements. These statements reflect management’s current beliefs, assumptions and are subject to a number of other factors that may cause actual results to differ materially.
Such factors include but are not limited to: risks and uncertainties related to the completion of the offering of the Notes on the anticipated terms or at all; applicable market conditions; the satisfaction of customary closing conditions related to the offering; global macroeconomic conditions, including inflation, slower growth or recession, delays or disruptions in the global supply chain, higher interest rates, and wars and other conflicts, including the current conflict between Russia and Ukraine; our ability to succeed in a competitive environment, including by developing new products and service offerings and preserving our existing products and market share as well as repositioning our business in the face of customer preference, technological, and other change, such as evolving
and hybrid working trends; failure of our customers, vendors, and logistics partners to perform their contractual obligations to us; our ability to attract, train, and retain key personnel; execution risks around our Reinvention; the risk of breaches of our security systems due to cyber, malware, or other intentional attacks that could expose us to liability, litigation, regulatory action or damage our reputation; our ability to obtain adequate pricing for our products and services and to maintain and improve our cost structure; changes in economic and political conditions, trade protection measures, licensing requirements, and tax laws in the United States and in the foreign countries in which we do business; the risk that multi-year contracts with governmental entities could be terminated prior to the end of the contract term and that civil or criminal penalties and administrative sanctions could be imposed on us if we fail to comply with the terms of such contracts and applicable law; interest rates, cost of capital, and access to credit markets; risks related to our indebtedness; the imposition of new or incremental trade protection measures such as tariffs and import or export restrictions; funding requirements associated with our employee pension and retiree health benefit plans; changes in foreign currency exchange rates; the risk that we may be subject to new or heightened regulatory or operation risks as a result of our, or third parties,’ use or anticipated
- 3 -