Xerox Holdings (XRX) shares jumped nearly 7% intraday Mo𒆙nday after the office products maker announced that it was buying priva♐tely held Lexmark International from its Chinese owners for $1.5 billion to address the increased number of workers with flexible schedules. The company also slashed its dividend in half to help pay the costs. 

The company said the deal would "strengthen the Xerox core print portfolio and build a broader global print and managed print services business better suited to meet the evolving needs of clients in the hybrid workplace."

Xerox added that the purchase will also as🅺sist the company in serving cl൩ients in the growing A4 color market, as well as boost its reach in the Asia-Pacific (APAC) region.

Xerox Trimming Dividend to He꧃lp Pay for Acquisition

The company noted that the money for the acquisition would come through cash on hand and committed debt financing. It explained that its annual dividend would be cut to $0.50 per year from $1.00, starting with the expected dividend in the first quarter of 2025. Xerox said the move "provides incremental capacity to reduce debt while continuing to reward shareholders with an above-market yield." 

Th🧸e transaction is expected to close in the second half of 20♋25. 

Despite today's gains, shares of Xerox Holdings are down 50% this year.