Lexmark eyes strategic alternatives

Lexmark says it's enterprise software business and high-end services are undervalued. Is there a sale or spin-off on the way?

Lexmark said Friday that it is pursuing strategic alternatives for the company, which has a traditional printer business, services and an enterprise software unit.

Strategic alternatives typically refers to a sale or some kind of split of the company.

in a statement, Lexmark said its board authorized a review of alternatives because there is shareholder value that isn't being reflected.

The company said its $3.7 billion revenue base includes a $700 million enterprise software unit as well as a $2.4 billion annuity sales base that revolves around printing supplies, warranties and software maintenance.

One obvious move would be to spin out Lexmark's enterprise software division, which revolves around applications from Kofax and Readsoft.

Here's a look at Lexmark's moving parts.