Xerox Holdings (XRX) said Monday that it has agreed to acquire Lexmark International from Ninestar, PAG Asia Capital, and Shanghai Shouda Investment Center for $1.5 billion, including assumed liabilities.

The company expects to fund the transaction through a combination of existing cash and committed debt financing. Xerox said its board approved cutting the company's annual dividend by half, to $0.50 per share from $1 per share, related to the transaction's funding.

The lower dividend will be effective in Q1, according to the statement.

Xerox expects the transaction to boost its balance sheet and estimates the acquisition to be immediately accretive to earnings per share and free cash flow. According to the company, Lexmark will add to its core print portfolio and diversify its distribution footprint.

Xerox said its board has approved the acquisition and expects to close the transaction in H2 2025, subject to Ninestar shareholders' approval and other customary closing conditions.