As planned, Xerox reports today that it’s completed its separation into two publicly traded companies, Conduent Incorporated, which will be devoted to providing business-process outsourcing (BPO) services, and Xerox Corporation, which will be devoted to providing copier/MFPs, printers, their related supplies and solutions, and document-outsourcing services..
“Today is an historic day for Xerox. The successful completion of the separation sharpens our market focus and commitment to our customers,” commented Xerox CEO Jeff Jacobson. “I am confident the transformational actions we are implementing position Xerox for long-term success and unlocks shareholder value.”
Members of the company’s executive team, employees, and customers will celebrate the milestone by ringing the opening bell at the New York Stock Exchange tomorrow.
Xerox says its focus on growing its global leadership in digital print technology and services will help customers “innovate how they communicate, connect and work more productively.” It says its financial model and business strategy will enable “strong free cash flow generation and margin expansion, as well as targeted investments in attractive growth areas, such as document outsourcing and solutions for small- and medium-sized businesses.”
Under the terms of the separation, on the distribution date of December 31, 2016, Xerox shareholders received one share of Conduent common stock for every five shares of Xerox common stock they held as of the close of business on December 15, 2016, the record date for the distribution.
In connection with the spin-off, Xerox received a cash transfer from Conduent of $1.8 billion, which it intends to use, along with cash on hand, to retire approximately $2.0 billion in debt.
- December 2016: Xerox to Stay in Connecticut after State Offers Low-Interest Loan
- December 2016: Xerox Gears up for ‘Largest New Product Launch’ – 29 New ConnectKey MFPs Coming, New Dealer Recruitment
- December 2016: Xerox Names Hoover Chief Technology Officer
- December 2016: Xerox Appoints New Board Members, New CFO
- November 2016: Xerox Board Approves Split into Two Companies
- October 2016: Revenues Down, but Net Income up for Xerox’s Third Quarter
- October 2016: Xerox Wins 10-Year, $110 Million MPS Contract with U.S. Department of Agriculture
- October 2016: Xerox Rolls Out New Conduent Brand Logo as it Prepares for Split into Two Companies
- June 2016: Jeff Jacobson to Become CEO of Xerox Document Technology Company