GEC NEWS WIREXerox to Separate into Two Market-Leading Public Companies Following Completion of Comprehensive Structural Review
In line with Xerox’s review of the company’s portfolio and capital allocation options as on October 2015, the Board of the company has unanimously approved the management’s plan to separate Xerox into two independent publicly- traded companies, each of which will be a leader in its respective industry.
The Document Technology company will continue in document management and document outsourcing with approximately $11 billion in 2015 revenue. It will lead the market with superior technology, solutions and innovations that optimize document management in an increasingly interconnected, digital world.
The Business Process Outsourcing (BPO) company will be an industry leader that helps clients improve the flow of work by leveraging its expertise in managing transaction-intensive processes and applying innovations to automate and simplify business processes. As an independent company, BPO will further refine its portfolio of services and pursue significant growth and margin expansion opportunities.
The leadership and names of the two companies will be determined as the separation process progresses.
“A core tenet of the strategic transformation we are embarking on today is changing and improving the way we operationalize our businesses. We have identified a plan to deliver cumulative reductions of $2.4 billion over the next three years as part of this process,” said Ursula Burns, Chairman and CEO of Xerox.
Xerox’s objective is to complete the separation by year- end. Until the separation is complete, Xerox will continue to operate as a single.
