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Xerox exits joint venture with Fujifilm after 57 years

Xerox will sell its stake in Fuji Xerox to a subsidiary of Fujifilm for US$2.3bn

Xerox -
Fujifilm and Xerox agreed to merge in January 2018 but the deal collapsed

Xerox Holdings Corp (NYSE:XRX) has agreed to sell its 25% stake in Fuji Xerox, its joint venture of 57 years with Japan’s Fujifilm Holdings Corp, for US$2.3 billion.

The printer company is selling the stake in Fuji Xerox Co Ltd to a subsidiary of Fujifilm, ending its partnership with the camera maker after last year’s failed merger.

Fujifilm and Xerox agreed to merge in January 2018, and had it gone ahead, Fujifilm would have traded its 75% stake in the Asian joint venture for a 50.1% stake in a new Xerox that would operate world-wide.

The new deal, announced on Tuesday, also ended a US$1bn lawsuit instigated by Fujifilm against Xerox over the merger, in which the Japanese company alleged it had been unlawfully terminated due to pressure from activist investors Carl Icahn and Darwin Deason at Xerox.

Tuesday’s agreement included a further sale of Xerox’s 51% stake in another smaller joint venture project Xerox International Partners (XIP) to an affiliate of Fuji Xerox.

“These agreements reset our relationship with Fujifilm and provide both companies with tremendous opportunities to grow, together and independently,” said Xerox’s chief executive John Visentin.

Xerox was trading 3.8% higher at US$36 in pre-market trading on Monday.

Quick facts: Xerox

Price: 38.69 USD

NYSE:XRX
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Market Cap: $8.36 billion
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