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Xerox and Fujifilm get divorced

  • The Nikkei Asian News reports that Fujifilm intends to take full control of its joint venture with Xerox
  • has given up on its battle to acquire Xerox
  • intends to bring Fuji Xerox — a joint venture between the two — completely under its own umbrella
  • plans to buy out Xerox’s 25% stake in Fuji Xerox for about $2.3 billion
  • will now withdraw the lawsuit that was seeking a $1 billion penalty from Xerox for backing out of deal where Fujifilm would acquire Xerox
  • Making Fuji Xerox a wholly owned subsidiary is expected to boost Fujifilm’s annual net profit by around 20 billion yen ($183 million)
  • buyout means Fujifilm will be able to sell their MFP/printer products to other manufacturers for them to relabel
  • buyout also includes Fujifilm paying Xerox $100 million to use the brand “Xerox” for two more years (expected to drop the word “Xerox” in future from “Fuji Xerox”)
  • Fujifilm plans to continue selling MFP/printer products to Xerox to relabel
  • could also mean that Fujifilm will enter the U.S. and Europe and attempt to sign up dealers for Fuji Xerox branded MFPs and printers (or Fujifilm brand)
  • Xerox said that it will “use the proceeds opportunistically to pursue accretive M&A in core and adjacent industries, return capital to shareholders and pay down its $550 million December 2019 debt maturity.”
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