- The Nikkei Asian News reports that Fujifilm intends to take full control of its joint venture with Xerox
- has given up on its battle to acquire Xerox
- intends to bring Fuji Xerox -- a joint venture between the two -- completely under its own umbrella
- plans to buy out Xerox's 25% stake in Fuji Xerox for about $2.3 billion
- will now withdraw the lawsuit that was seeking a $1 billion penalty from Xerox for backing out of deal where Fujifilm would acquire Xerox
- Making Fuji Xerox a wholly owned subsidiary is expected to boost Fujifilm's annual net profit by around 20 billion yen ($183 million)
- buyout means Fujifilm will be able to sell their MFP/printer products to other manufacturers for them to relabel
- buyout also includes Fujifilm paying Xerox $100 million to use the brand “Xerox” for two more years (expected to drop the word “Xerox” in future from “Fuji Xerox”)
- Fujifilm plans to continue selling MFP/printer products to Xerox to relabel
- could also mean that Fujifilm will enter the U.S. and Europe and attempt to sign up dealers for Fuji Xerox branded MFPs and printers (or Fujifilm brand)
- Xerox said that it will “use the proceeds opportunistically to pursue accretive M&A in core and adjacent industries, return capital to shareholders and pay down its $550 million December 2019 debt maturity.”
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