Fuji Xerox

History

2019: Sold to Xerox a share in the joint venture with Fujifilm for $2.3 billion

On November 5, 2019 it was announced that Fujifilm redeems from Xerox a share in the Fuji Xerox joint venture (JV) which specializes in production of the copy equipment and provision of services of document flow.

Under the terms of the agreement, 25% of the stocks Fuji Xerox which belonged to Xerox earlier will take over by Fujifilm therefore the Japanese corporation will become the individual owner of the joint venture. This transaction worth $2.3 billion of Xerox and Fujifilm refused plans for merge.

Fujifilm redeems from Xerox a share in the Fuji Xerox joint venture (JV) which specializes in production of the copy equipment and provision of services of document flow

Earlier the agreement that Fuji Xerox will redeem from Fujifilm a 75% share for $6.1 billion then Fujifilm will use these means for acquisition of 50.1% of new stocks of Xerox and receiving control over the American company was reached. The transaction broke. Fujifilm filed a lawsuit against Xerox, having demanded compensation in $1 billion and completion of process of merge.

In accordance with the terms transactions on Fuji Xerox the Fujifilm company agreed to stop the legal procedure begun against Xerox in June, 2018.

Fuji Xerox is the important business for Fujifilm bringing to the Japanese company nearly a half of revenue. Xerox used this enterprise for production of all photocopiers under the brand.

According to the CEO of Fujifilm Shigetaka Komori, this transaction is ideal for Fuji Xerox and Fujifilm as thanks to it the companies will be able quicker to make decisions in the dynamic market.

Xerox she intends to use proceeds for the conclusion of transactions on merges and absorption, capital repayment to shareholders and reductions of the debt which is $550 million.

The transaction which is going to be closed in November, 2019 was unanimously approved by Boards of Directors both companies. It does not require shareholder voting.^[1]

2018: Fujifilm receives control over Xerox

On January 31, 2018 the Japanese producer of photography equipment Fujifilm announced receiving control over Xerox and merge of the American company to the joint venture (JV) — Fuji Xerox. It becomes for the purpose of cost reduction. Read more here.

2017: Long-term overestimate of income

In August, 2017 it became known of scandal effects with a juggling of financial data in Fujifilm. The company suffered severe losses and refused some government contracts.

Fujifilm made internal investigation during which 360 thousand files and e-mails which are stored on servers and computers and belonging to 58 employees of the company were studied.

It became clear that managers of the Australian and New Zealand divisions of Fuji Xerox for many years overestimated revenues of the company, did not specify losses in reports and forged accounting documentation that allowed these employees to get big awards for allegedly carried out tasks.

Office Fuji Xerox in Shanghai

For example, in 2015 revenue of Fuji Xerox in New Zealand was overestimated on papers by 30%. In six years the amounts approximately of 70% of contracts in the country were forged. The case of 2013 when the company continued to deliver products to the large customer, despite warnings of the forthcoming bankruptcy of this customer is remarkable.

Products which were selected with head office for free advertizing providing to educational institutions in documentation were considered as sale.

Damages from such fraudulent activity in Fujifilm were assessed at 37.5 billion yens ($340 million) from 2010 for 2015. Besides, the company was forced to freeze contracts with the government of New Zealand.

Due to the juicy scandal six board members of division of Fuji Xerox resigned. To the chief executive of Fujifilm of Shigetaka Komori and also the president and the operating officer Kenji Sukeno reduced salaries. Komori released the chairman of the board of directors Tadahito Yamamoto removed from this position from a duty.^[2]

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