Fujifilm Will Take Over Xerox – Set For Joint Venture With $6.1 Billion Deal

This post was written by: Vishal aaditya

Japan’s digital imaging company Fujifilm Holdings is all set to take over the US based Xerox Corp in a $6.1 billion deal. Fujifilm will combine with the US company into their existing joint venture which will help to gain scale and also cut costs amid the declining demand for office printing space.

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The acquisition was announced later today as Xerox Corp. has been running into losses in the last few years and has been under pressure to find some newer sources of growth. The company has struggled to reinvent their legacy business as the demand for the office printing has gone down with technology. Fujifilm will try to streamline the copier business with more focus on the document solutions services.

The new JV will consolidate the R&D, the procurement and also the other operations would enable the Fuji Xerox to deliver at least $1.7 billion in total cost savings by the end of 2022, the two companies said during the announcement.

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Fujifilm will now own around 75 percent of the new Fuji Xerox JV, and the new venture sails down to more than 50 years ago, which sells the photocopying products and services in the Asia-Pacific region.

The new combined entity will keep the Fuji Xerox name, and the organisation will be a subsidiary of Fujifilm, with dual headquarters in both United States and Japan, and has been listed in New York. The JV will be led by Xerox CEO Jeff Jacobson, while the Fujifilm CEO Shigetaka Komori will serve as the chairman.

The new Fuji Xerox joint venture accounts for around half of Fujifilm’s sales and operating profit.

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