The legal conflict between Norwalk-headquartered Xerox Holdings Corp. and Japan’s Fujifilm Holdings Corp. following their aborted 2018 merger has been resolved.
Under the terms of the agreement between the companies, Xerox will sell its 25% stake in Fuji Xerox Co. Ltd., which will operate as a wholly owned subsidiary of Fujifilm and will
continue to supply to Xerox after completion of the transaction. Xerox will also sell its 51% stake in Xerox International Partners (XIP), an original equipment manufacturer joint venture between Xerox and Fujifilm Xerox, along with the grant of a new IP license. Fujifilm will also drop its $1 billion lawsuit against Xerox that was filed after last year’s terminated merger.
The agreement was approved by the directors of both companies without the need of shareholder votes. Xerox said that its total after-tax proceeds from the transactions will include accrued but unpaid dividends through the date of the closings and are expected to be approximately $2.3 billion.
“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.
“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 CEO of Fujifilm.