Fujifilm acquires Xerox in a $6.1 billion deal
Xerox Corp, a US-based company that's become synonymous with the printing hardware market, is set to be acquired by Japan's Fujifilm Holdings in a $6.1 billion deal. Fujifilm will incorporate Xerox in an existing joint venture, called Fuji Xerox, in a bid to scale document solution services and streamline its copier business. Here is more on the business deal.
Fujifilm to own 75% of the joint venture Fuji Xerox
The joint venture will become a subsidiary of Fujifilm, which will own 75% of Fuji Xerox. While Xerox CEO Jeff Jacobson will lead the joint venture, Fujifilm CEO Shigetaka Komori will serve as its chairman. Fuji Xerox will be headquartered in both the US and Japan. Fujifilm will also cut about 10,000 jobs or over a fifth of its workforce at Fuji Xerox.
Fujifilm, Xerox to save $1.7 billion post the acquisition
According to reports, Xerox succumbed to the deal as it was under pressure to reinvent its legacy business since office printing has been seeing a steady decline in demand. The two companies also said that the collaboration will enable them to save a total of $1.7 billion by 2022, through consolidation of segments like R&D and procurement.
Fuji Xerox a leading name in the photocopier market
Notably, the joint venture is over 50 years old and has been dominantly selling photocopying products and services in the Asia-Pacific region. However, as offices increasingly go paperless, both the companies had lately been struggling with slow sales.
