Fujifilm Holdings Corporation has scarcely announced the acquisition of Xerox Corporation in a deal estimated to be around USD 6.1 billion. Sources state that the takeover comes in the wake of Xerox being pressurized to find newer avenues of growth amidst the declining demand for printing.
As per authentic reports, the combined entity will be identified with the same name as Fuji Xerox, which is expected to be a subsidiary of Fujifilm. The existing stockholders of Xerox will apparently get a dividend of USD 9.80 on each share after the merger, while Fujifilm will own nearly 50.1% of the stake in the joint business.
For the uninitiated, Xerox, since a while now, has had to operate its office printing business with reduced profit margins owing to lower demand. Experts claim that this particular deal will be a win-win situation for both the firms, with Fujifilm restructuring its copier business through the acquisition, while Xerox regaining its lost business legacy. The two reputed firms have announced that the agreement will also help in the integration of R&D operations and other business activities, thereby helping the combined unit to save nearly USD 1.7 billion by 2022.
Apparently, the newly formed business entity will have its headquarters across both – the U.S. and Japan, with its shares listed on the New York Stock Exchange.
With numerous businesses going paperless, companies working in the photocopy product manufacturing domain have been witnessing a decline in growth. The introduction of paperless systems has indeed impacted the ROI of Xerox and Fujifilm, state analysts.
Reports claim that Fujifilm shares dipped 8.3 percent post its declaration of job cuts and its proposed deal with Xerox. Xerox’s shares however, prior to the announcement, reduced by around 0.5 percent.