Xerox Completes Sale of Stake in Fuji Xerox
Xerox reported today that it’s closed its previously announced transactions with FUJIFILM Holdings Corporation, which included:
- Sale of Xerox’s 25 percent stake in Fuji Xerox (FX) to a subsidiary of FUJIFILM;
- Modified sourcing terms for future product programs that will ensure Xerox’s product-supply continuity;
- Sale to an affiliate of FX of Xerox’s 51-percent stake in Xerox International Partners (XIP), an OEM joint venture between Xerox and FX, which, together with the grant of a new IP license, will allow FX to OEM certain products (such as printer engines) to named parties that are existing customers of XIP on a worldwide basis in exchange for a fixed royalty; and
- Dismissal of the $1 billion lawsuit FUJIFILM filed against Xerox after last year’s terminated merger.
Total after-tax proceeds to Xerox from the transactions are approximately $2.3 billion. Xerox says it will “use the proceeds opportunistically to pursue accretive M&A in core and adjacent industries, return capital to shareholders and pay down its $554 million December 2019 debt maturity.”
Xerox expects to provide updated 2019 guidance by early December 2019 that incorporates the impact of the transactions.