Xerox, the firm best known for making printers and photocopiers, today announced that it is splitting into two publicly traded companies, in a bid to turn around its ailing fortunes.
“Today Xerox is taking further affirmative steps to drive shareholder value by announcing it will separate into two strong, independent, publicly traded companies,” said Ursula Burns, chairman and chief executive officer of Xerox.
“These two companies will be well positioned to lead in their respective rapidly evolving markets and capitalise on the opportunities that now exist to expand margins and increase market share.”
The split will create an $11bn (£7.7bn) document technology company that contains its office machines business and a $7bn business process outsourcing company that encompasses its services division.
Billionaire investor Carl Icahn, who owns an eight per cent stake in the firm, will select three directors for the board of the business process outsourcing company, Xerox said in a separate statement.
The news coincided with today’s fourth-quarter update, which revealed an eight per cent drop in revenues to $4.7bn, in line with consensus forecasts.
Earnings came in at 32 cents per share, beating the average estimate of 28 cents.
Xerox’s shares have fallen by more than a quarter in the past year, but the company launched a strategic review last October to establish a change of direction going forward.
The firm is focusing on software and services to offset the decline in traditional hardware such as office printers.