Reuters – Xerox, under pressure to find new growth sources amid shrinking demand for its printer and copier business, is in talks for a deal with Japanese camera maker Fujifilm Holdings that could include a change in control of Xerox, the Wall Street Journal reported.
Norwalk, Connecticut-based Xerox has been targeted by activist investor Carl Icahn as it struggles to reinvent its legacy business amid waning demand for office printing. Fujifilm is trying to streamline its copier business with a larger focus on document solutions services.
Xerox, which pioneered photocopiers, and Fujifilm already have a five-decade old Tokyo-based copier joint venture focusing on the Asia Pacific region including Japan and China, leaving Xerox to cover the rest of the world.
The Journal report on Wednesday cited people familiar with the matter. It also said a full takeover of Xerox is not on the table, citing an insider.
Xerox declined to comment. Fujifilm said it would not comment on speculative reports.
Xerox has a market value of about $7.7bn, while Fujifilm is valued at around $22bn.
Xerox “desperately” needed new leadership as it was slow to launch new products and increase revenue, Icahn wrote in an open letter to shareholders in December, a day after nominating four members to the board. He is Xerox’s biggest shareholder with a stake of 9.7%.