FUJIFILM set to take over Xerox in 6.1 billion dollar deal
FUJIFILM Holdings is fully geared up to take over Xerox Corp in a $6.1 billion deal, combining the latter into their existing joint venture FUJI-XEROX to scale up document printing business. The landmark acquisition came when Xerox was reeling under pressure to find new sources of growth to reinvent its legacy business amid declining demand for office document printing, as businesses increasingly go paperless. In the meanwhile, FUJIFILM is trying to streamline its copier business with a larger focus on document solutions services. The two companies said consolidation of R&D, procurement and other operations would enable FUJI-XEROX to deliver at least $1.7 billion cost savings by 2022.
FUJIFILM owns 75 percent of FUJI-XEROX, which has been selling photocopying products and services in Asia-Pacific. Now, after the new acquisition, the combined company will keep the name FUJI-XEROX as a subsidiary of FUJIFILM with dual headquarters in Japan and the US, led by Xerox CEO Jeff Jacobson, while FUJIFILM CEO Shigetaka Komori will serve as chairman. The two companies said the combined company would gain an increased edge in new technologies, along with higher revenues and cost synergies.