March 19, 2019
New reports claim that the OEM is exploring a potential deal for its customer financing business, which currently accounts for over 65 percent of its total debt.
Reuters reports that Xerox has said it is planning to simplifying its operations, leading to gross savings of “at least” $640 million (€563.5 million) in 2019, and $1.5 billion (€1.32 billion) by 2021.
The company’s financing unit, which lends money to customers so that they can rent printers and equipment, currently accounts for around $3.4 billion (€2.99 billion) of the company’s overall debt of $5.2 billion (€4.58 billion), as of December 31 last year. It brought in around $300 million (€264.1 million) of revenue in the 2018 fiscal year, around 4 percent of Xerox’s total $7.63 billion (€6.72 billion) revenue.
The move follows recent news of a restructuring plan, which will see the company become a wholly owned unit of a new holding company, trading under the Xerox banner.
The OEM has been weighing up its options, following the bitter termination of its previously-announced merger with Fujifilm, which came after a heated campaign of opposition from influential billionaire shareholders Carl Icahn and Darwin Deason.
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