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Xerox Company to Get a Xerox- Split into Two

Posted on the 29 January 2016 by Technogala @TechnoGala

Xerox logoXerox Corp (XRX.N) will soon be splitting into two companies. The split is to make one part hold its legacy printer operations and the other its business process outsourcing unit. This is done in a bid to be more nimble after years of trying to integrate the businesses.
Activist investor Carl Icahn, who first revealed a stake in Xerox in November, is all get three board seats on the outsourcing company and he tweeted on Friday that this separation that the company undergoes will greatly enhance the value for Xerox Corp shareholders. And he was proved right as Xerox shares rose nearly 6 percent to $9.78.
Xerox also posted fourth-quarter results, with profit rising 42.5 percent and costs and expenses falling 7.3 percent. The company, whose shares had fallen more than 30 percent in the past 12 months, has tried to turn itself around by focusing on software and services as customers cut printing costs.
Regarding the two companies potentially attracting interest from buyers, Xerox Chief Executive Officer Burns acknowledged that Xerox’s board and executives would speak to anyone interested.”They are both strong and both large companies. But this would not be a small buy at $11 billion and $7 billion,” she said. Burns, who took the helm in 2009 also added that the leadership and names of the new companies were yet to be decided.
The document technology company, which will make printers and copiers, is estimated to have a annual revenue of $11 billion, while the business process outsourcing company will have $7 billion in revenue.

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