Xerox-the iconic American company that began in Rochester, New York in 1906-has been acquired by Fujifilm for $6.1 billion. Xerox shareholders would own just under half of the resulting entity and would get an implied premium for their stock and cash, it said.
Fujifilm and Xerox created this copier joint venture in 1962, meaning Fujifilm was free to focus on the Asia Pacific region including Japan and China, whereas Xerox was able to cover the rest of the world.
They say the goal of the restructuring is to reorganize operations and streamline manufacturing bases. Icahn, along with investor Darwin Deason, also called for Xerox to replace chief executive officer Jeff Jacobson.
Xerox has offices in Dublin, Cork and Belfast - while Fujifilm has a branch office in the capital. "We have great relationships with the company, and it has been reinforced to me that this really appears to be a positive move for Xerox". It is rare to see a company's name become a verb.
By combining businesses, Fujifilm and Xerox say they can deliver economies of scale, new R&D opportunities, and more efficiencies to address markets like inkject printers, industrial print and workplace solutions.
Reuters reports the new combined company, which will be known as New Fuji Xerox, will become a subsidiary of Fujifilm, with dual headquarters in the United States and Japan, and listed in NY. A cost reduction plan has been put into place at the existing JV, which is targeted to generate approximately $450 million of cost savings on an annualized basis.
The deal will produce an example of "true integrated management that will enable global expansion", Fujifilm Chairman and CEO Shigetaka Komori told reporters Wednesday as this new ownership structure was announced.
Formed in 1962 it was the longest running joint venture between United States and Japanese companies. 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.
Xerox, an icon of corporate America that pioneered the office copy machine as well as the graphic interface and mouse used with today's computers, only to be blindsided by the digital revolution, is coming under Japanese control.
It said the planned restructuring measures involve job cuts and closing or integrating manufacturing bases, and would lower annual costs by 50 billion yen from the year ending March 2020.