Photocopier maker Xerox and Japanese camera maker Fujifilm are in talks to strike a major deal that may or may not include a change of control of Xerox, according to sources.
Xerox been targeted by activist investor Carl Icahn as it struggles amid waning demand for office printing. Fujifilm is trying to streamline its copier business with a larger focus on document solutions services. 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%.
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.
Xerox has a market value of around US$7.7bn, while Fujifilm is valued at around US$22bn.
Shares in Xerox rose as much as five per cent in after-market trading while stock in Fujifilm fell as much as 2.3 per cent.