Xerox has agreed to a $6.1bn takeover bid from Japan´s Fujifilm, just as fourth-quarter results provided evidence that its transformation strategy was making headway.
The deal with Fujifilm combines US-listed Xerox into the existing joint venture with the Japanese group as part of a strategy to gain scale and reduce costs in a diminishing office printing market.
As part of the deal with Fujifilm, Xerox shareholders will receive a $2.5 billion special cash dividend, or approximately $9.80 per share, and 49.9% of the combined company. Fujifilm will own 50.1%.
“The proposed combination has compelling industrial logic and will unlock significant growth and productivity opportunities for the combined company, while delivering substantial value to Xerox shareholders,” said Jacobson.
Fourth-quarter results showed some improvement on the prior year. Total revenue rose 0.5% to $2.7bn.
Xerox reported a fourth-quarter loss of $190m compared with a $843m loss for the same period of 2016.
However, the bottom line was also weighed down by a $400m one-off charge due to US tax reform.
“With positive results across all metrics, our fourth-quarter performance clearly demonstrates the progress we have made and enabled us to deliver on our commitments for the full-year,” said chief executive Jeff Jacobson.
Xerox shares were 2.5% higher in pre-market trading on Wednesday.