Fujifilm Takes Over Xerox In $6.1B Joint Venture Deal

  • Fujifilm Takes Over Xerox In $6.1B Joint Venture Deal

Fujifilm Takes Over Xerox In $6.1B Joint Venture Deal

The company will achieve $1.2 billion of these cost savings by 2020.

Jeff Jacobson, current Chief Executive Officer of Xerox, will be appointed as Chief Executive Officer of New Fuji Xerox.

On Wednesday, Japan's Fujifilm Holdings announced that it will take over Xerox. Fujifilm on Wednesday reported a 29.4 percent drop in operating profit at its document solutions operations, which includes Fuji Xerox, for the third quarter, underperforming its imaging and information segments. The two companies founded office equipment maker Fuji Xerox in 1962 as a 50-50 joint venture. Fujifilm, itself, has had some trouble in recent years, as it had weathered accusations of having improper accounting standards in the joint venture, also called Fuji Xerox.

Fujifilm shares traded down about 8.3% in Tokyo at ¥4,190 (about $38.46).

The transaction was unanimously approved by the Board of Directors of Fujifilm and Xerox on January 31st, and January 30th respectively.

The two companies will combine by Fuji Xerox becoming a 100 per cent subsidiary of Xerox, and Xerox will change its name to "Fuji Xerox" (hereinafter "New Fuji Xerox").

Xerox announced a net misfortune from proceeding with operations of $196 million (generally Rs. 1,245 crores) in the final quarter, mostly because of an irregular $400 million (Rs. 2,542 crores) charge as it tried to exploit changes to USA assess law yet additionally mirroring the consistent decrease in office printing.

"This has been a speedy decision, but I believe it's a creative one", Fujifilm CEO Komori told reporters at a briefing. "In the past, Fuji Xerox only operated in the Asia-Pacific region, and Xerox targets the Americas and Europe", Chan said. "An attractive, certain cash dividend, together with participation in the future success of the combined company, presents a compelling value equation for Xerox shareholders". While the impact in Upstate New York is now unknown, a company conference call is scheduled for Wednesday.

This deal would end Xerox's year-long decline according to the Wall Street Journal.

After collaborating as corporate partners for more than half a century, Fujifilm and Xerox are embarking on a closer union amid the challenges of a declining market for their legacy printer businesses. When Xerox fell on hard times, Fujifilm lifted its stake in Fuji Xerox to 75% in 2001.