Xerox Talks with Fujifilm for a Deal

Originally published by USA Today

Xerox reportedly in talks for a deal with Fujifilm

Xerox is reportedly in talks with Japanese camera company Fujifilm to strike a deal that could rejuvenate the document technology company.

A deal could result in a “change of control” at the Norwalk, Conn.-based company, though a full takeover of Xerox Corp. (XRX) is not on the table, the Wall Street Journal reported Wednesday.

Fujifilm and Xerox embarked on a joint venture in the 1960s, called Fuji Xerox Co., a consolidated subsidiary of parent company Fujifilm Holdings Corp. Fuji Xerox spread to multiple countries in the Asia-Pacific area, developing office and printing equipment.
Carl Langsenkamp, a Xerox spokesman in Rochester, N.Y., said he was not willing to comment on the Wall Street Journal story at this time.

Fujifilm Holdings reported last year that accounting problems caused a loss of $340 million. An independent review showed the problems stemmed from leasing agreements in Australia and New Zealand, and called for supervisory oversight to be strengthened. Xerox owns a 25% stake in the company.

In December, Carl Icahn, Xerox’s largest stakeholder who reported a 9.7% stake in the company last year, criticized Xerox’s leadership for refusing to “acknowledge that change is needed,” specifically in the boardroom.

“We have shown time and time again that replacing an ineffective CEO can lead to billions and billions of dollars of value creation for all shareholders,” said Icahn in an open letter to Xerox shareholders.

Xerox defended of its performance since the 2016 separation of Conduent Inc. (CNDT), saying the company has delivered on its promises to shareholders and is ahead of schedule in its strategic transformation plan.

Xerox is the largest manufacturer in the Rochester area, where it employs about 6,000 people. Before the move to Connecticut, Xerox’s headquarters were in Rochester.