Xerox announced on Thursday that following some new changes made in the company, it will be restructuring itself to become a fully wholly owned unit of a new holding company.
Based in the United States, Xerox Corporation is a global company famous for its print and digital documents products. Based on the release, this announced reorganization will be implemented by the company sometime around mid-2019, with the company's new holdings and shares to be placed on the New York Stock Exchange under its current ticker "XRX".
The company made this decision because a holding company structure allows a firm, or in this instance, a company, to subsequently lower its tax bill, protect its patents more easily and diversify it's unit's businesses efficiently without using too many funds or money.
The maneuver made by the company is similar to one made by Google in 2015, when it reorganized under Alphabet, taking everyone by surprise.
A new start
Just last year, the company announced that their company would combine with the 56-year old joint venture Fuji Xerox, with FujiFilm holdings to take a stake of 50.1 percent in what would have been a new combined company to be called New Fuji Xerox. The deal was meant to be part of a restructuring that, along with other reforms and changes, would save the companies an estimated $1.7 billion a year by 2022.
However, per Xerox, the deal was being terminated because of Fujifilm's failure to negotiate on improved terms.
Per the companies former board in a released statement, "Over the past several weeks, the Xerox Board has repeatedly requested that Fujifilm immediately enter into negotiations on improved terms for a proposed transaction. Despite our insistence, Fujifilm provided no assurance that it will do so within an acceptable time frame," the company said.
However, the negotiation still wouldn't push through.
Now, however, with this new venture, Xerox can easily adapt to the changing business market and secure its future. In fact, under the new management led by Chief Executive Officer John Visentin, the company was able to top profit estimates during the last two quarters.
