Menu
Xerox explores sale of leasing finance unit

Xerox explores sale of leasing finance unit

Divesting leasing unit would relieve vendor of roughly US$3.6 billion in debt

Xerox is considering the sale of a leasing unit that lends money to customers to rent printers and equipment, to make itself more attractive to potential acquirers following the termination of its US$6.1 billion sale to Fujifilm Holdings, according to people familiar with the matter.

Divesting the leasing unit would relieve Xerox of roughly US$3.6 billion in debt, one of the sources said.

Activist investors Carl Icahn and Darwin Deason, who took control of Xerox earlier this year, are preparing to launch an auction for the company, which has a market capitalisation of US$6.4 billion and total debt as of the end of March of US$5.5 billion.

Xerox has not made a final decision on selling the leasing finance unit, the sources said this week, asking not to be identified because the deliberations are confidential.

Xerox declined to comment, while representatives for Icahn and Deason did not respond to requests for comment.

Reuters reported in May that buyout firm Apollo Global Management approached the company to express its acquisition interest.

Reducing Xerox's liabilities through the sale of the leasing finance unit would allow private equity firms to place more debt on the company to juice returns.

Xerox has said it is exploring its strategic options after it ended its deal with Fujifilm, following pressure from Icahn, a billionaire investor, and Deason, a former executive at a company that Xerox acquired several years ago. The two together own 15 per cent of Xerox shares.

The company has been engaged in a legal fight with Fujifilm since their merger agreement ended in May.

Fujifilm sued Xerox in June for more than US$1 billion, accusing it of breaching its merger contract and engaging in "intentional and egregious conduct." Xerox has disputed these claims.

The head of Fuji Xerox, a 56-year-old joint venture between Fujifilm and Xerox, said this week he was confident that the escalating dispute between the partners would not lead to the venture’s dissolution.

Fujifilm owns 75 per cent of the joint venture and Xerox the remainder.

Xerox said last month it would start sourcing products from new vendors to lower its dependence on Fujifilm, and cautioned it may not renew a technology agreement with Fuji Xerox.

Fujifilm responded by threatening to compete against Xerox in Asia Pacific and challenge it in America and Europe if it failed to renew the technology agreement in 2021.

(Reporting by Greg Roumeliotis and Liana B. Baker in New York; Editing by Steve Orlofsky)


Follow Us

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags PrintersXeroxfujifilm

Featured

Slideshows

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomes industry figures for 2019 Hall of Fame lunch

Reseller News welcomed 2018 inductees - Chris Simpson, Kendra Ross and Phill Patton - to the third running of the Reseller News Hall of Fame lunch, held at the French Cafe in Auckland. The inductees discussed the changing landscape of the technology industry in New Zealand, while outlining ways to attract a new breed of players to the ecosystem. Photos by Gino Demeer.

Reseller News welcomes industry figures for 2019 Hall of Fame lunch
Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019

The channel came together for the inaugural Reseller News Emerging Leaders Forum in New Zealand, created to provide a program that identifies, educates and showcases the upcoming talent of the ICT industry. Hosted as a half day event, attendees heard from industry champions as keynoters and panelists talked about future opportunities and leadership paths and joined mentoring sessions with members of the ICT industry Hall of Fame. The forum concluded with 30 Under 30 Tech Awards across areas of Sales, Entrepreneur, Marketing, Management, Technical and Human Resources. Photos by Gino Demeer.

Upcoming tech talent share insights at inaugural Emerging Leaders Forum 2019
Show Comments