The OEM has discussed the “new chapter” as a “focused industry leader”, with share prices up 20 percent.
The OEM announced at the beginning of 2016 that it planned to split into two companies before the end of the year, with the split into Conduent and Xerox – for business process optimisation and hardware respectively, and worth $11 billion (€10.1 billion) and $7 billion (€6.4 billion) respectively. Xerox’ new CEO was revealed to be Jeff Jacobson, while Ashok Vemuri will run Conduent.
Last November, the OEM’s largest shareholder, who attempted to block the split, agreed a settlement in a court case. Darwin Deason had sued Xerox because of the spin-off of its document outsourcing business, as he felt that his shares would lose value after the split. However, during November, the OEM’s board approved the split and said it would take place by 31 December.
The Recycler reported yesterday that the split had been completed, and Xerox has now also commented on the formal separation, stating that it is beginning “a new chapter as [a] focused industry leader in digital print technology”. Last month, it also revealed that its “executive leadership team” would ring the opening bell at the New York Stock Exchange (NYSE) on Thursday 4 January.
Xerox noted that its “focus on growing its global leadership in digital print technology and services will help customers innovate how they communicate, connect and work more productively”. In turn, its “financial model and revitalised business strategy will enable strong free cash flow generation and margin expansion, as well as targeted investments in attractive growth areas, such as document outsourcing and solutions for small- and medium-sized businesses”.
CNBC also reported that Xerox’s share price “spiked nearly 20 percent” after the split was completed, with financial firm Credit Suisse predicting that the share price “will climb 39 percent over the next year”, while other firms “updated their outlook” after the developments. Conduent’s stock meanwhile fell “nearly eight percent” after the split was confirmed.
Jacobson commented: “Today is an historic day for Xerox. The successful completion of the separation sharpens our market focus and commitment to our customers. I am confident the transformational actions we are implementing position Xerox for long-term success and unlocks shareholder value.”