Xerox announced that it has entered into agreements with Fujifilm. In the new agreement, Xerox will sell its 25% stake in Fuji Xerox to a Fujifilm subsidiary.
This transaction will bring Fujifilm’s ownership of Fuji Xerox to 100%. Upon completion, Fuji Xerox will operate as a wholly owned subsidiary of Fujifilm and will continue to supply to Xerox.
Fujifilm will also dismiss the USD$1 billion lawsuit filed against Xerox after last year’s terminated merger.
Xerox will be paid an approximate $2.3 billion, which the company says will be used for mergers and acquisitions, return capital to shareholders and pay down its $550 million December 2019 debt maturity.
The two companies have been in dispute since Fujifilm announced its intention to acquire Xerox early last year. The move was met with opposition from Xerox investors, especially shareholders Carl Icahn and Darwin Deason. Upon agreement termination, Fujifilm sued Xerox. During the legal wrangle, Xerox saw the resignation of its then-CEO, Jeff Jacobson, who now heads EFI.
Xerox expects to provide updated 2019 guidance by mid-December.