Lexmark mulls cutting itself in two

steven-ho-conan-watermelon-360x240Long time printer maker Lexmark is considering the possibility of hacking itself in two.

The outfit wants to divesting its hardware and software assets separately to revive interest in its sale process.

Lexmark held discussions with several potential buyers about the sale of the entire company but it didn’t seem that anyone was particularly interested.

Reuters now claims that private equity firms are now having conversations with Lexmark about acquiring either its hardware or software assets. The company has yet to make any decision on a way forward, the people added.

Officially Lexmark is saying nothing.

“Lexmark does not intend to comment on the exploration process or disclose further developments until the board approves a specific transaction or otherwise concludes the exploration of strategic alternatives,” the company said in a statement.

However Lexmark, which has a $1.74 billion market capitalization, announced in October that it was exploring strategic alternatives, including a sale, and had hired Goldman Sachs Group as an adviser.

Lexmark has sought to diversify and aggressively bought up software assets to bulk up its services catering to business customers. Last year it bought Kofax Ltd for about $1 billion, a company which provides data services to financial, insurance and healthcare companies.

It also said the deal would double the size of its enterprise software unit to a $700 million business.

Lexmark’s software can scan everything from spreadsheets to medical images. It has customers in banking, healthcare, insurance and retail companies. Its software business has a higher growth rate but it represents a small portion of revenue compared to the hardware business.