Fujifilm to take over Xerox as photocopier demand drops

Fujifilm to take over Xerox as photocopier demand drops

Troy Powers
February 1, 2018

Under the definitive agreement, Xerox will cede a 50.1 percent stake in the USA printer and copier giant to the Japanese document solutions powerhouse, the companies announced on Wednesday.

Xerox Corp (NYSE:XRX) shares jumped almost 5 percent in the after-hours trading session on Tuesday following reports that Japan-based Fujifilm Holdings Corp.is about to make an agreement to buy more than 50 percent shares of Xerox.

The deal is apparently aimed at delivering a more competitive edge in a climate of greater demand for digital equipment and paperless services.

Fujifilm said Wednesday that it will cut 10,000 jobs globally at the existing joint venture to deal with a decline in the photocopying business.

They say the goal of the restructuring is to reorganize operations and streamline manufacturing bases. By doing that, he said Xerox and Conduent have better positioned themselves for such a deal.

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. Current Xerox CEO Jeff Jacobson will continue lead the company, while Fujifilm CEO Shigetaka Komori will serve as chairman.

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"Companies didn't make much money from the actual photocopiers and printers themselves, but more from the sale of toners and paper".

A deal, which could be announced today will value Xerox at $8 billion, which was the market value of Xerox at the close of trading on Tuesday. The companies will each maintain their brands, they said.

The transaction has been unanimously approved by the boards of directors of both firms.

Icahn and fellow large shareholder Darwin Deason in mid-January called for Xerox to evaluate strategic options related to the joint venture.

Earlier this month, The Wall Street Journal reported that Fujifilm and Xerox were discussing an array of possible alternatives that may or may not have included a change of control of Norwalk, Conn. -based Xerox.