Fujifilm Buys Control of Xerox, Jacobson to Lead New Company
- Author: Anthony Vega Feb 01, 2018,
Feb 01, 2018, 0:43
The deal with Fujifilm combines US-listed Xerox into the existing joint venture with the Japanese group as part of a strategy to gain scale and reduce costs in a diminishing office printing market.
Xerox Corp. reached a deal with Fujifilm Holdings Corp. that would cede control of the US corporate giant to the Japanese company after pressure from activist investor Carl Icahn to shake up a venture operated by the two companies.
They say the goal of the restructuring is to reorganize operations and streamline manufacturing bases.
The agreement could be revealed as soon as Wednesday.
Fuji Xerox, a printer and photocopier maker, 75% owned by Fujifilm and 25% by Xerox, operates in the Asia-Pacific region, while Xerox operates in Europe and North America.
Under the terms of the agreement, Xerox shareholders will receive a US$2.5bn (€2bn) special cash dividend, or approximately US$9.80 (€7.87) per share.
I am confident that Fujifilm's ability to drive change as well as its experience of successful reinvention will give a competitive edge to the new Fuji Xerox, delivering significant value creation to shareholders of both the new Fuji Xerox and Fujifilm.
Through restructuring and other reforms, the companies expect to save $1.7 billion a year by 2022. Through a joint venture based partnership spanning 56 years, the Company and Xerox have deepened their multi-faceted mutual cooperation on technology, etc. and built a strong relationship of trust. The news came days afterWall Street Journal disclosed that activist Xerox stakeholders Carl Icahn and Darwin Deason were urging Xerox to explore a sale.
"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", Robert J. Keegan, chairman of Xerox's Board of Directors, said.
Martin Wolf, president of martinwolf M&A Advisors, said earlier this month that a Fujifilm-Xerox deal makes sense following the Conduent spin-off, which split Xerox with its business services division.