Fujifilm to Take Over Xerox
After weeks of speculation, Xerox today confirmed that Japan’s Fujifilm Holdings will take over the office copier pioneer, ending Xerox's 115 years as an independent company. The $6.1 billion deal will combine Xerox with its longstanding Fuji Xerox joint venture, which operates in the Asia-Pacific region. Fujifilm will own 50.1% of the business.
“The Document Solutions business represents a significant part of Fujifilm’s portfolio, and the creation of the new Fuji Xerox allows us to more directly establish a leadership position in a fast-changing market," said Shigetaka Komori, chairman and chief executive officer of Fujifilm, in a press release. "We believe Fujifilm’s track record of advancing technology in innovative imaging and information solutions — especially in inkjet, imaging, and AI areas — will be important components of the success of the new Fuji Xerox.”
“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," added Xerox CEO Jeff Jacobson, who has been under fire in recent weeks from key shareholders, pushing for his ouster. Jacobson added that the combined company would gain an increased edge in new technologies, along with higher revenues and cost synergies.
Though its origins date to 1903, Xerox came into its own with the creation of the modern copy machine in 1938, invented by Chester Carlson. That technology led its dominance in the copier arena until it was "blindsided by the digital revolution," according to the New York Times.
Several in-plants that operate Xerox equipment offered their takes on the news:
"Personally I find this very disturbing," said Steve Priesman, manager of Printing & Publications Services at Omaha Public Schools. "I realize Xerox Fuji built a large portion of the Xerox product line. We have had major problems with Fuji insofar as their sales and support organization for the graphic arts market."
"I am excited to see what this change will bring to the market," added Christopher Donlon, associate communications manager at Kohler Co. "In-plants always walk a fine line with companies like Xerox that also offer managed print services that would surely replace us given the opportunity. A technology and machine capability focus as well as enhanced field service is what our industry needs at this time. Drupa 2020 should be very interesting."
"I just feel sorry for the people that will bear the brunt of the $1.7 billion in savings," remarked Ken Johnson, director of Printing Services at Ball State University. "You know that most of the cost savings will come at the expense of good hard-working people, who will not get golden parachutes."
— Reuters Top News (@Reuters) January 31, 2018
“Cost savings” is often code for job cuts. Folks at Xerox have reason to be gravely concerned about impact of Fuji deal on their jobs. https://t.co/CAtGgHWTDd
— Sean Lahman (@seanlahman) January 31, 2018
Bob has served as editor of In-plant Graphics since October of 1994. Prior to that he served for three years as managing editor of Printing Impressions, a commercial printing publication. Mr. Neubauer is very active in the U.S. in-plant industry. He attends all the major in-plant conferences and has visited more than 130 in-plant operations around the world. He has given presentations to numerous in-plant groups in the U.S., Canada and Australia, including the Association of College and University Printers and the In-plant Printing and Mailing Association. He also coordinates the annual In-Print contest, cosponsored by IPMA and In-plant Graphics.