Xerox Holdings Corporation announced that it has closed its previously announced transactions with Fujifilm Holdings Corporation, which included the sale of Xerox’s 25 percent stake in Fuji Xerox Co., Ltd. to a subsidiary of Fujifilm.
The deal included that Xerox sold its stake in the Fuji Xerox venture and receives $2.3billion (€2.06 billion) and secure modified sourcing terms for future product programmes that will ensure Xerox’s product supply continuity.
Xerox also sold its 51 percent stake in Xerox International Partners (XIP), an OEM joint venture between Xerox and Fuji Xerox, which, together with the grant of a new IP license, will allow Fuji Xerox 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.
The $1 billion (€0.89 billion) Fujifilm lawsuit against Xerox for reneging on the deal to merge the two companies will be dismissed.
Exiting the Fuji Xerox partnership and ending the legal action leaves Xerox open to pursue accretive M&A in core and adjacent industries, return capital to shareholders and pay down its $554 million (€502 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.
