57-Year Xerox Fujifilm Joint Venture Over
Xerox Fujifilm Joint Venture Ends Over Spoiled Merger Deal
Xerox and Fujifilm have announced the dissolution of their 57-year joint venture, Fuji Xerox. Xerox has agreed to sell its 25% stake in Fuji Xerox and its 51% stake in Xerox International Partners to the Japanese company for $2.3B. Fujifilm will also drop its $1B lawsuit against Xerox for breach of contract when the $6.1B merger deal dramatically fell apart in 2018.
“These agreements reset our relationship with Fujifilm and provide both companies with tremendous opportunities to grow, together and independently,” said John Visentin, vice chairman and CEO of Xerox. “These agreements also unlock significant unrealized value for our shareholders, provide greater clarity for our customers and help us speed our transformation to a digital-first company.”
“Fuji Xerox will operate as a wholly owned subsidiary of Fujifilm and will continue to supply to Xerox after completion of the transaction,” according to the Fujifilm press release.
“This transaction is an ideal next step for Fuji Xerox and Fujifilm that we believe serves our stakeholders well and reflects our commitment to create innovative products that contribute to society,” said Shigetaka Komori, Chairman and Chief Executive Officer of Fujifilm. “Fuji Xerox has now become a lean and strong company after a series of reforms we started in 2018, and I am confident that with this initiative it will be even stronger.”
Mr. Komori continued, “Full ownership of Fuji Xerox will facilitate faster decision making in a rapidly changing business environment. At the same time, Fuji Xerox will be able to further strengthen its business by capturing new OEM opportunities in the global market, leveraging our world-leading product development and manufacturing capabilities. We are excited to start a new chapter for Fujifilm and Fuji Xerox.”