Lexmark 2013 Annual Report Download - page 8

Part I
Item 1. BUSINESS
General
Lexmark International, Inc. (“Lexmark” or the “Company”) is a Delaware corporation and the surviving company of a merger
between itself and its former parent holding company, Lexmark International Group, Inc., (“Group”) consummated on July 1, 2000.
Group was formed in July 1990 in connection with the acquisition of IBM Information Products Corporation from International
Business Machines Corporation (“IBM”). The acquisition was completed in March 1991. On November 15, 1995, Group completed
its initial public offering of Class A Common Stock and Lexmark now trades on the New York Stock Exchange under the symbol
“LXK.”
Lexmark makes it easier for businesses of all sizes to improve their business processes by enabling them to capture, manage and
access critical unstructured business information in the context of their business processes while speeding the movement and
management of information between the paper and digital worlds. Since its inception in 1991, Lexmark has become a leading
developer, manufacturer and supplier of printing, imaging, device management, managed print services (“MPS”), document workflow
and, more recently, business process and content management solutions. The Company operates in the office printing and imaging,
enterprise content management (“ECM”), business process management (“BPM”), document output management (“DOM”),
intelligent data capture and search software markets. Lexmark’s products include laser printers and multifunction devices, dot matrix
printers and the associated supplies/solutions/services, as well as ECM, BPM, DOM, intelligent data capture, search and web-based
document imaging and workflow software solutions and services. Lexmark develops and owns most of the technology for its printing
and imaging products and its software related to MPS and content and process management solutions.
The Company acquired Perceptive Software, Inc. (“Perceptive Software”), a leading provider of ECM software and document
workflow solutions, in June of 2010 and acquired Pallas Athena, a leading provider of BPM, DOM and process mining and discovery
software in October of 2011. The acquisitions build upon and strengthen Lexmark’s industry workflow solutions and MPS capabilities
and allow the Company to compete in the faster growing content and process management software solutions markets. In keeping with
this strategy and with the goal of becoming an end-to-end solutions provider, Lexmark acquired Brainware in February of 2012, and
ISYS and Nolij in March of 2012. Brainware’s intelligent data capture platform extracts critical information from paper documents
and electronic unstructured content enabling customers to more efficiently perform business processes. ISYS’s search solutions
deliver powerful text mining and enterprise and federated search capabilities across a wide range of platforms enabling customers to
facilitate rapid discovery of critical intelligence for more informed decision making. Nolij’s software is a fully web-based document
imaging and workflow platform that includes innovative, native support for mobile devices and forms processing capabilities, focused
on the education market. In December of 2012, Lexmark acquired Acuo Technologies, LLC (“Acuo”). Acuo is a leader in the vendor
neutral archive (“VNA”) software segment that resides within the high growth enterprise clinical management and medical imaging
software and services market. Acuo, when combined with Lexmark’s Perceptive Software healthcare content and process
management solutions, will enable customers to deploy a single, enterprise-wide access platform that connects unstructured clinical
content and makes it easily accessible in context via a healthcare provider’s electronic medical record (“EMR”) system.
In March of 2013, the Company acquired AccessVia, Inc. (“AccessVia”) and Twistage, Inc. (“Twistage”). AccessVia provides
industry-leading signage solutions to create and produce retail shelf-edge materials, all from a single platform, which can be directed
to a variety of output devices and published to digital signs or electronic shelf tags. AccessVia, when combined with Lexmark’s MPS
and expertise in delivering print and document process solutions to the retail market, will enable customers to quickly design and
produce in-store signage for better and more timely merchandising in a highly distributed store environment. Twistage offers an
industry-leading, cloud-enabled software platform for managing video, audio and image content. When combined with Lexmark,
Twistage will enable customers to capture, manage and access all of their content, including rich media content assets, within the
context of their business processes and enterprise applications. In September of 2013, Lexmark acquired Saperion AG (“Saperion”).
Saperion is a European-based leader in ECM solutions, focused on providing document archive and workflow solutions. The
acquisition expands Perceptive Software’s European-based footprint in the ECM market, and will further strengthen the Company’s
strategy of providing the platform, products and solutions that help companies manage their unstructured information challenges. In
October of 2013, the Company acquired PACSGEAR, Inc. (“PACSGEAR”). PACSGEAR is a leading provider of connectivity
solutions for healthcare providers to capture, manage and share medical images and related documents and integrate them with
existing picture archiving and communication systems (“PACS”) and EMR systems. With this acquisition, Perceptive Software will
be uniquely positioned to offer a vendor neutral, standards-based clinical content platform for capturing, managing, accessing and
sharing patient medical imaging information and related documents within healthcare facilities through an EMR and between facilities
via PACSGEAR technology. The Company continues the transition to a solutions company as it shifts from a hardware-centric
company to a solutions company providing end-to-end solutions that allow customers to bridge the paper and digital worlds and the
unstructured and structured content/process worlds.
The Company is primarily managed along two segments: Imaging Solutions and Services (“ISS”) and Perceptive Software. The
information included in this report has been prepared under the current organizational structure for all periods presented. Refer to
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