January 31, 2018 07:15 AM
Xerox announced Wednesday morning that it will cede power to Fujifilm in a joint venture.
Under the deal, Xerox shareholders will receive a $2.5 billion special cash dividend, or approximately $9.80 per share. Xerox shareholders will hold a 49.9 percent stake in Xerox holdings. Fujifilm will hold a 50.1 percent dividend.
In its company’s fourth quarter earnings, Xerox reported, “The combined company will be a global leader in innovative print technologies and intelligent work solutions with annual revenues of $18 billion and leadership positions in key geographic regions.”
The news could be devastating for Rochester area Xerox employees. Fortune reports that Fujifilm plans to cut 10,000 Fuji Xerox jobs globally.
Xerox reported that ceding power to Fujifilm was unanimously approved by the Boards of Directors of both Fujifilm and Xerox. The combined company will be named “Fuji Xerox” and trade on the NYSE under the ticker XRX.
The new Fuji Xerox will have dual headquarters in Connecticut and Japan.
“The proposed combination has compelling industrial logic and will unlock significant growth and productivity opportunities for the combined company, while delivering substantial value to Xerox shareholders,” said Jeff Jacobson, Xerox CEO.
“The new Fuji Xerox will be better positioned to compete in today’s environment with truly global scale, increased presence in fast-growing markets, and innovation capabilities to effectively meet our customers’ rapidly-evolving demands," he said. "In addition, the combined company’s strong financial profile will enable investments that support continued market leadership, while also providing opportunities for increasing capital returns over time.”
“Today’s announcement follows a comprehensive review of our strategic and financial alternatives led by Xerox’s independent directors that began after the separation of Conduent in 2016,” said Robert J. Keegan, chairman of Xerox’s Board of Directors.
“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,” Keegan 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. We are excited to strengthen our longstanding relationship with Fujifilm as we enter the next phase of Xerox’s transformation journey.”
Xerox has an 8 a.m. conference call with Xerox shareholders on Wednesday.
Stay with News10NBC for updates on this developing story.
Updated: January 31, 2018 07:15 AM
Created: January 31, 2018 04:45 AM
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