Xerox cedes control to Fujifilm in $18 billion deal

REUTERS  Thomas White  Illustration  File

Fujifilm said in a statement it will hold a press conference at 5 pm Wednesday in Tokyo, to discuss earnings and its new corporate strategy.

The new company will retain the Fuji Xerox name and maintain its listing on the New York Stock Exchange, trading under the existing XRX ticker symbol.

The acquisition announced on Wednesday comes as Xerox has been under pressure to find new sources of growth as it struggles to reinvent its legacy business amid waning demand for office printing. The remaining 50.1% will belong to Fujifilm.

New Fuji Xerox will become the largest document solutions company in the world in revenue size, and by deploying its operations worldwide with a uniform management strategy, New Fuji Xerox will realize further acceleration of business growth and new value creation for customers. Importantly, the combined company will have an increased total addressable opportunity estimated at almost $120 billion and a strong presence in attractive growth markets, allowing the new company to become more competitive and better able to serve customers and business partners globally. Fujifilm shares closed 8.32% lower at JPY4,190. They established Fuji Xerox in 1962 as a 50-50 joint venture, with Fujifilm increasing its stake to 75% in 2001.

The two companies noted that the combined entity will be a global leader in innovative print technologies and intelligent work solutions, with annual revenues of USD18 billion and leadership positions in key geographic regions.

Xerox shares were up 9.70% at the time of reporting, after closing at $32.68 on Tuesday.

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

The Journal reported Fujifilm and Xerox are close to a deal that would combine Xerox with the current joint venture company it has with Fujifilm, and that the US company's shareholders would own just under half of the resulting entity. Fuji Xerox is mainly engaged in business in Japan and the Asia Pacific region, while Xerox is mainly engaged in business in USA and Europe.

Reuters reports Fujifilm will cut 10,000 jobs in Asia by 2020.

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