Fujifilm has announced a merger with Xerox in a move that will see Fuji own 50.1% of the new company.
Fujifilm said in a statement that the combined company should deliver a total of $1.7 billion in annual cost savings by 2022, with $1.2 billion of the total cost savings expected by 2020.
The move, however, will see some 10,000 jobs cut, largely from Xerox, which has struggled with falling revenues in recent years.
The combined company will now be called Fuji Xerox. The new company’s statement says:
Moreover, by leveraging Fujifilm’s vast range of technologies, as well as its experience and knowhow in creating new businesses, New Fuji Xerox will accelerate its transformation, as a leading company not only in the office document business, which it has the No.1 position in, but also in commercial printing, centered around inkjet, as well as various types of industrial printing, and solution services that improve operational processes and productivity…
The successful closing of this transaction is expected to have a mid-to-long term positive impact on Fujifilm’s consolidated earnings after the new Fuji Xerox becomes a consolidated subsidiary. There will be no impact from the combination to Fujifilm’s consolidated earnings in fiscal year 2017.
Via Fuji Addict