Fujifilm has entered into a definitive agreement with Xerox Corporation under which Fujifilm will acquire the 25 per cent stake in Fuji Xerox that Xerox owns, ending a 57-year association.
This transaction will bring Fujifilm’s ownership of Fuji Xerox to 100 per cent. The Boards of Directors of Fujifilm and Xerox have unanimously approved the transaction
Fuji Xerox will operate as a wholly owned subsidiary of Fujifilm and will continue to supply to Xerox after completion of the transaction.
Shigetaka Komori, chairman and chief executive officer of Fujifilm, says, “This transaction is an ideal next step for Fuji Xerox and Fujifilm that we believe serves our stakeholders well and reflects our commitment to create innovative products that contribute to society.
“Fuji Xerox has now become a lean and strong company after a series of reforms we started in 2018, and I am confident that with this initiative it will be even stronger.
“Full ownership of Fuji Xerox will facilitate faster decision making in a rapidly changing business environment. At the same time, Fuji Xerox will be able to further strengthen its business by capturing new OEM opportunities in the global market, leveraging our world-leading product development and manufacturing capabilities. We are excited to start a new chapter for Fujifilm and Fuji Xerox.”
As part of the transaction, Fujifilm has agreed to withdraw litigation it filed against Xerox on June 18th, 2018 claiming damages caused by the unilateral cancellation of the definitive agreement between the two companies.
Background to the transaction
Founded in 1962, Fuji Xerox Co is a leading document solutions company and most recently has existed as a 75 per cent-25 per cent joint venture between Fujifilm and Xerox. Throughout its 57-year history, it has provided office related products and solutions to increase productivity and has grown into a company with revenues exceeding 1 trillion yen ($14.4bn) It is also known as one of the most successful cross-border joint ventures between Japanese and non-Japanese companies.
Fuji Xerox operates in the Asia-Pacific market and has a strong customer base for large corporations and government offices. In addition, it has achieved a unique position in the document industry by leveraging excellent product development capabilities and manufacturing technology.
In light of the fact that uncertainty about the future of the global economy is increasing and competition in the market is intensifying, Fujifilm has decided it is best to have Fuji Xerox as a wholly owned subsidiary to flexibly implement necessary measures in a timely manner in order to achieve further growth.
Transaction Overview
- Fujifilm to acquire Xerox’s 25 per cent ownership stake in Fuji Xerox and its 51% ownership in Xerox International Partners, a 51/49 Joint Venture between Xerox and Fuji Xerox that operates OEM business in the U.S. and Europe
- Fujifilm to have expanded OEM opportunities in the global market under a new agreement with XeroxFuji Xerox and Xerox to extend an existing product supply agreementFujifilm to pay USD $2.3Bn in aggregate to Xerox
