Xerox has struggled to grow its document technology & related business over the last four years with 2017 revenues down 19% compared to 2014. Spurred by activist shareholder Carl Icahn—who owns approximately 9.7% of Xerox shares—Xerox spun off its business process outsourcing business, Condulent, in 2016. Mr. Icahn has been vocal recently about seeking significant changes to Xerox’ board of directors, senior management, and the Fuji Xerox joint venture with an eye on a potential sale of Xerox.
By acquiring a majority share of the combined Xerox/Fuji Xerox entity, Fujifilm eliminates much of the uncertainty associated with its stake, and also sees significant opportunities for cost savings & leveraging of core technology and go-to-market assets.
InfoTrends Opinion
Fujifilm has proven to be very astute over the last 15-years as it navigated through the rapid demise of its traditional photographic film business. InfoTrends believes Xerox is making a smart move to combine assets with a long-time partner with deep financial & technological resources. We anticipate the organizational changes will move along quickly and that the combined company will soon begin to rationalize and expand its product portfolio.
By acquiring a majority share of the combined Xerox/Fuji Xerox entity, Fujifilm eliminates much of the uncertainty associated with its stake, and also sees significant opportunities for cost savings & leveraging of core technology and go-to-market assets.
InfoTrends Opinion
Fujifilm has proven to be very astute over the last 15-years as it navigated through the rapid demise of its traditional photographic film business. InfoTrends believes Xerox is making a smart move to combine assets with a long-time partner with deep financial & technological resources. We anticipate the organizational changes will move along quickly and that the combined company will soon begin to rationalize and expand its product portfolio.
