December 9, 2016
The OEM announced at the beginning of this year 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.
Earlier in 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 hoped it would take place by 31 December.
The OEM reported that the investor conference would “provide details on its business strategy and long-term financial model as a standalone company”, claiming that it would be a “leader” in an $85 billion (€80 billion) market “with focus on driving continued strong cash flow, margin expansion, and improving revenue trajectory”.
In terms of “delivering on the new Xerox”, it outlined actions “to position itself for continued leadership in the digital print technology market”, including “accelerated productivity and cost initiatives” led by its “three-year strategic transformation programme”, which it believes will “deliver at least” $1.5 billion (€1.4 billion) in “productivity gains and cost savings”, and “further accelerate Xerox’s operational excellence and cost competitiveness”.
Another area is a “renewed focus on growth markets” such as “document outsourcing and colour production”, through “strategies to increase its participation in underpenetrated markets”, while another focus is set to be “game-changing global product launch and market expansion”, including the “largest new product launch in its history”. This will consist of MFPs including apps, “on-the-go print capabilities” and cloud connectivity.
Jacobson commented: “Today, we unveil the new Xerox, a company dedicated to helping our customers innovate how they communicate, connect and work to drive greater productivity. Our strategy builds on our solid financial foundation to drive strong cash generation and margin expansion while improving our revenue trajectory over the long term. We remain committed to delivering attractive, balanced returns for our shareholders.”
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