The 1962 established JV, Fuji Xerox primarily served the Asia-Pacific region, with Fujifilm owning a majority 75% stake. According to a report, with the USD 6.1-bn bank fund, Fuji Xerox will first buy the 75% stake in the JV to become a 100% subsidiary of Xerox, and Xerox will change its name to Fuji Xerox. Fujifilm will acquire 50.1% of the new Fuji Xerox. The new company will maintain dual headquarters in US and Japan, and will operate as “Fuji Xerox” and “Xerox” brands within its respective operating regions.
It will also mark the end of Xerox as an independent company, which was founded in 1906.
Xerox India had in a previous interaction with PrintWeek India claimed that it has a 30% share in the Indian digital print market, and the news was received with a dash of confidence in both Xerox and Fujifilm. “I read it today, though I am aware that in Singapore and Japan, Xerox presses are sold under Fuji Xerox for quite some time now,” said Tushar Dhote, director at Mumbai-based Dhote Technokrafts. “Xerox services at the backend are unbeatable. I am sure Fujifilm and Xerox will maintain the same level of services.”
According to the Fujifilm press release, Shigetaka Komori, chairman and chief operating officer of Fujifilm and Chairman of the existing Fuji Xerox, will serve as chairman of the new Board, which will include 12 members, seven of whom will be appointed by the Fujifilm board. Five independent directors will be appointed from the Xerox board.
Komori, describing the partnership between the two companies as “exceptional”, and the transaction “strategic”, said, the new Fuji Xerox allows us to more directly establish a leadership position in a fast-changing market. We believe Fujifilm’s track record of advancing technology in innovative imaging and information solutions – especially in inkjet, imaging, and AI areas – will be important components of the success of the new Fuji Xerox.”
Jeff Jacobson, current CEO of Xerox, who has had a run-in with activist investor Carl Icahn, who has pushed Xerox to explore the option including a shake-up in its JV with Fujifilm, and even called for Jacobson’s replacement as chief executive officer of Xerox, will serve as chief executive officer of the new Fuji Xerox. He said, “The combined company’s strong financial profile will enable investments that support continued market leadership, while also providing opportunities for increasing capital returns over time.
An industry player, who did not wish to be named, said, “It’s a hell of a job to integrate cultures. I feel the first phase will see a major drop in value. As the new entity paces up all rattling parts will go. There will be job loss, product streamlining. I guess what we will see is a very focused imaging technology company which will have a workflow at its heart and all formats and all technology – offset, flexo, laser, inkjet, continuous inkjet, and UV – working to put together the final products.”