Fujifilm acquired Xerox in $6.1 billion takeover of Fuji-Xerox

Fujifilm Holdings Corp. took over Xerox Corp. in a US$6.1 billion deal to the Fuji Xerox joint venture. Giant Minato acquired the Norwalk company to gain scale and cut costs as a new force in the combined company amid a downturn in demand for office printing.

Wednesday's announcement shows where Fujifilm is trying to streamline its copier business with a greater focus on document solution services, while Xerox is under pressure to find new sources of growth struggling to rediscover its heritage business amid reduced demand for printing.

Fujifilm acquired Xerox in $6.1 billion takeover of Fuji-Xerox

The two companies say consolidation, procurement and other operations enable Fuji-Xerox to save at least US$1.7 billion by 2022. Fujifilm owns 75 percent of Fuji Xerox shares in which the joint venture will restore its 50th anniversary in products and services in the Asia Pacific region.

The announcement also mentioned Fuji-Xerox will use the funds to buy a new 50.1 percent stake in Xerox where the deal will be completed around July-August. The combined company will carry the name Fuji-Xerox and become a subsidiary of Fujifiln, the dual headquarters in the United States and Japan, and registered in New York.

Fuji Xerox will be led by Xerox CEO Jeff Jacobson, while Fujifilm CEO Shigetaka Komori will become chairman. Both companies have struggled with the slow sales of photocopies where the industry is increasingly having no paper.

"It's a quick decision, but I'm sure it's creative.The new structure will leverage the power of our three companies," Komori said.

Fujifilm said about the dismissal of 10,000 jobs in Fuji-Xerox, more than one-fifth of the workforce in the joint venture in the Asia Pacific region. Jacobson said the joint venture would gain an increase in new technology, higher revenue and cost synergies, while shareholders would benefit from a US$2.5 billion cash dividend.

"This transaction offers huge profits for the joint venture shareholders who will have shares in more competitive companies and opportunities for long-term growth and margin expansion," Jacobson said.

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