Fuji Xerox looks forward to a more flexible and nimble future as a 100 per cent-owned subsidiary of Fujifilm with significant synergies tipped to flow from last week’s deal.
The deal which saw Fujifilm buy Xerox Corporation’s 25 per cent share in Fuji Xerox for US$2.3b was inked last week ending a joint venture that was started between the two tech giants to serve the Asia Pacific market 57 years ago.
It also ended a long running saga between the two partnership companies.
As part of the transaction, Fujifilm agreed to withdraw litigation it filed against Xerox on June 18th, 2018 related to what it called damages caused by the unilateral cancellation of the definitive agreement between the two companies.
A spokesperson for Fuji Xerox has told Sprinter there will be no material impact on the products and services sold by Fuji Xerox in Australia and New Zealand with the change expected to be positive for the business as any conflicts of interest with minority shareholders have now been removed.
“We do not expect any material impact, as we will continue our service as usual,” a Fuji Xerox spokesperson said.
“Fuji Xerox’s business domain was limited to document related business in the Joint Enterprise Contract agreement.
“In addition, we needed Xerox Corporation’s pre-approval when we wanted to make new investments or partnerships that exceeded a certain size. As there will be no conflict of interest for minority shareholders, we will have more flexibility in business management to implement measures in a timely manner.”
No major senior management changes have also been foreshadowed with the spokesman confirming the only expected change is a Xerox Corporation board member will resign from the Fuji Xerox board.
In all the move has been received positively at Fuji Xerox.
“We believe that it is a positive move for us. By making Fuji Xerox a 100 per cent owned subsidiary of Fujifilm Holdings, Fujifilm/Fuji Xerox synergies will be generated more than ever,” the spokesperson said.
Fuji Xerox Co. Ltd was founded in 1962 as a document solutions company. It most recently was made up of a 75 per cent to 25 per cent joint venture between Fujifilm and Xerox. Throughout its 57-year history, it has provided office related products and solutions to increase productivity and has grown into a company with revenues exceeding 1 trillion yen. It is also known as one of the most successful cross-border joint ventures between Japanese and non-Japanese companies.
Fuji Xerox operates in the Asia-Pacific market and has a strong customer base for large corporations and government offices. It has also been able leverage itself in the document industry using its product development capabilities and manufacturing technology.
Fujifilm says that given the uncertainty about the future of the global economy and increased competition in the market, it was decided it would be best to have Fuji Xerox as a wholly owned subsidiary to flexibly implement necessary measures in a timely manner in order to achieve further growth.
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