Xerox Closes Transactions with FUJIFILM
November 08 2019 - 8:30AM
Business Wire
Xerox Holdings Corporation (NYSE: XRX) announced today that it
has closed its previously announced transactions with FUJIFILM
Holdings Corporation, which included:
- Sale of Xerox’s 25% stake in Fuji Xerox Co., Ltd. (FX) to a
subsidiary of FUJIFILM;
- Modified sourcing terms for future product programs that will
ensure Xerox’s product supply continuity;
- Sale to an affiliate of FX of Xerox’s 51% stake in Xerox
International Partners (XIP), an OEM joint venture between Xerox
and FX, which, together with the grant of a new IP license, will
allow FX to OEM certain products (such as printer engines) to named
parties that are existing customers of XIP on a worldwide basis in
exchange for a fixed royalty; and
- Dismissal of the $1 billion lawsuit FUJIFILM filed against
Xerox after last year’s terminated merger.
Total after-tax proceeds to Xerox from the transactions, which
included accrued but unpaid dividends through closing, are
approximately $2.3 billion. Xerox expects to use the proceeds
opportunistically to pursue accretive M&A in core and adjacent
industries, return capital to shareholders and pay down its $554
million December 2019 debt maturity.
Xerox expects to provide updated 2019 guidance by early December
2019 that incorporates the impact of the transactions.
King & Spalding LLP acted as legal counsel to Xerox in
connection with the transactions.
About Xerox
In the era of intelligent work, we’re not just thinking about
the future, we’re making it. Xerox Holdings Corporation is a
technology leader focused on the intersection of digital and
physical. We use automation and next-generation personalization to
redefine productivity, drive growth and make the world more secure.
Every day, our innovative technologies and intelligent work
solutions—Powered by Xerox®—help people communicate and work
better. Discover more at www.xerox.com and follow us on Twitter at
@Xerox.
Forward-Looking Statements
This release, and other written or oral statements made from
time to time by management contain “forward-looking statements” as
defined in the Private Securities Litigation Reform Act of 1995.
The words “anticipate”, “believe”, “estimate”, “expect”, “intend”,
“will”, “should”, "targeting", "projecting", "driving" and similar
expressions, as they relate to us, our performance and/or our
technology, are intended to identify forward-looking statements.
These statements reflect management’s current beliefs, assumptions
and expectations and are subject to a number of factors that may
cause actual results to differ materially. Such factors include but
are not limited to the factors set forth in the “Risk Factors”
section, the “Legal Proceedings” section, the “Management’s
Discussion and Analysis of Financial Condition and Results of
Operations” section and other sections of Xerox Corporation's 2018
Annual Report on Form 10-K, as well as in Xerox Corporation's and
Xerox Holdings Corporation's Quarterly Reports on Form 10-Q and
Current Reports on Form 8-K filed with the SEC. These
forward-looking statements speak only as of the date of this
release or as of the date to which they refer, and Xerox assumes no
obligation to update any forward-looking statements as a result of
new information or future events or developments, except as
required by law.
Note: Xerox® and Powered by Xerox® are trademarks of
Xerox in the United States and/or other countries.
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version on businesswire.com: https://www.businesswire.com/news/home/20191108005278/en/
Media Contact: Caroline Gransee-Linsey, Xerox,
+1-203-849-2359, Caroline.Gransee-Linsey@xerox.com
Investor Contact: Ann Pettrone, Xerox, +1-203-849-2590,
Ann.Pettrone@xerox.com
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