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.

Advertisements

We Welcome Your Feedback

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: