Lexmark Extends Ties with Anehuser - Analyst Blog


The leading printing and imaging solutions provider, Lexmark International Inc. ( LXK ) won a 5-year Managed Printing Services (MPS) contract from ace brewer Anehuser-Busch InBev ( BUD ). Financial terms of the deal were not disclosed.

Per the deal, Lexmark will provide printing services and deploy an identical fleet of standardized as well as multi-function printers across Anheuser-Busch locations in Europe.

Managed printing services are a blend of software tools, services and solutions that are customized for a particular organization. The services improve an organization's printing operations by reducing costs and supervision time.

With Lexmark's technology, Anheuser-Busch will be able to keep its printing inventory updated and thereby order the exact amount of consumables required. Apart from managing printing assets and its usages, Lexmark's MPS will provide critical information enabling the brewing company to make efficient decisions about printing requirements. Thus, Anheuser-Busch will be able to lower its operating costs.

Earlier, in January 2012, Anheuser opted for Lexmark's MPS solution for its U.S. operations and Labatt Brewing Company sites in Canada. Labatt Brewing Company was acquired in 1995.

Lexmark seems well positioned in the MPS space and gives tough competition to its peers Xerox Corp. ( XRX ) and Hewlett-Packard Co. ( HPQ ). Rising demand for Lexmark's MPS solutions led the renowned IT research firm Gartner to recognize it as a leader in the MPS category in October 2012.

Additionally, the scope for printing solutions is narrowing as digital technology and e-commerce are becoming more prevalent. However, Lexmark may benefit from its retail presence as it sells through Best Buy Co. (BBY) stores in the U.S.

Currently, Lexmark has a Zacks Rank #4 (Sell).

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: BBY , BUD , HPQ , LXK , XRX



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