July 4, 2016
The OEM’s forthcoming split was revealed in January, and current CEO Ursula Burns will not remain as CEO after it splits. The OEM will split into one business focused on services and the other focused on hardware in a strategy similar to the recent split of HP into Hewlett Packard Enterprise and HP Inc. The two were, recently named as Xerox Corporation (the document technology company) and Conduent (the business process outsourcing company),worth $11 billion (€10.1 billion) and $7 billion (€6.4 billion) respectively.
Xerox expects the separation to “be complete by the end of 2016”, and for it to “maximise return to shareholders and align with current market dynamics”. Xerox’ new CEO was recently revealed to be Jeff Jacobson, while Ashok Vemuri will run Conduent. The OEM noted that the Form 10 registration “includes important information on the planned distribution of shares”, as well as “an overview of the business”.
It also added that after the separation it “will continue to be a trusted partner to its customers, helping them to improve productivity, workflow and business performance”, and that the split is “intended to be tax-free to Xerox shareholders”. A new director was also added to the board, with Jonathan Christodoro also joining the OEM’s corporate governance and finance committees.
Burns stated: “Today’s filing marks a significant step toward completing Xerox’s separation, which will create two strong companies with enhanced focus and flexibility to pursue distinct and compelling business strategies and growth opportunities. We are making solid progress towards completing the separation by year-end and positioning the new companies for successful futures.”
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