(Yicai) Dec. 24 -- Chinese office equipment supplier Ninestar said it will sell US office printer maker Lexmark International to Xerox for USD1.5 billion in an all-cash deal.

Ninestar Group signed an agreement to sell the wholly owned unit to Xerox on Dec. 22, the Zhuhai-based company announced late yesterday. It did not give any the reasons for the sale.

A consortium formed of Ninestar, PAG Asia Capital, and Shanghai Shouda Investment Centre bought Lexmark from International Business Machines for about USD3.6 billion in 2016. Through the acquisition, Ninestar aimed to expand into the mid-to-high-end printer market, boost the printer consumables and other related businesses, and step up its international operations.

Lexington-based Lexmark is a leading provider of innovative imaging solutions and technologies, including a best-in-class line of printers and multifunction printers.

The sale requires shareholder approval and a national security signoff by agencies of the Committee on Foreign Investment in the United States, according to Ninestar, which held a 64 percent stake in Lexmark via Ninestar Group and was its indirect controlling shareholder.

Lexmark’s operating revenue rose 6 percent to USD1.1 billion in the first half of this year from a year ago, with printer sales climbing 22 percent and earnings before interest, taxes, depreciation, and amortization jumping 45 percent to USD127 million, according to its financial report.

Ninestar’s shares [SHE: 002180] came off 0.3 percent in Shenzhen today to close at CNY29.80 (USD4.08) apiece. Xerox [NASDAQ: XRX] ended 12.6 percent higher in New York yesterday at USD9.45 a share. 

Editors: Tang Shihua, Martin Kadiev