Fujifilm takes control of Xerox, will create a new joint venture

REUTERS  Thomas White  Illustration

REUTERS Thomas White Illustration

According to the WSJ, by combining Xerox with the joint venture it has with Fujifilm, the companies believe they can cut costs to combat declining demand. The combined company will have dual headquarters in Norwalk, Connecticut, where Xerox is based, and in Tokyo.

Billionaire investors Carl Icahn and Darwin Deason, who collectively hold over 15 percent of Xerox, had jointly persuaded the photocopier pioneer to explore strategic options, oust its "old guard", including its CEO Jeff Jacobson. The new board of directors will feature seven Fujifilm appointees and five Xerox-appointed independent directors.

Fujifilm said it would cut 10,000 jobs globally at its joint venture with Xerox, representing about 22 percent of its workforce at FujiXerox.

The two organizations said that Fuji Xerox will purchase back that stake from Fujifilm for around $6.1 billion, utilizing bank obligation.

Xerox shareholders will receive a $2.5 billion cash dividend, or about $9.80 per share.

"Upon careful consideration of all alternatives available to the company, the Board of Directors concluded that this combination is clearly the best path to create value for our shareholders", Xerox Chairman Robert J. Keegan said in Wednesday statement.

Patrick Leone, founder and CEO of Bloomington, Ind. -based MidAmerica Technology and developer of the SignMe app, said he thinks the addition of Fuji or another potential buyer would be an exciting component Xerox's go-to-market model.

The companies said they intend to expand in lucrative business areas such as high-speed inkjet commercial and industrial printing, using Fujifilm's technologies.

Fujifilm and Xerox have been partners for over a century. The transaction, which is expected to close in the second half of calendar year 2018, is subject to the satisfaction of customary closing conditions and regulatory approvals and approval by Xerox shareholders.

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