{"id":37999,"date":"2020-01-09T12:01:39","date_gmt":"2020-01-09T20:01:39","guid":{"rendered":"https:\/\/www.enxmag.com\/twii\/?p=37999"},"modified":"2020-01-09T12:01:42","modified_gmt":"2020-01-09T20:01:42","slug":"xerox-secures-24-billion-in-financing-for-hp-push-fuji-xerox-ends-partnership-pact","status":"publish","type":"post","link":"https:\/\/www.enxmag.com\/twii\/feature-articles\/2020\/01\/xerox-secures-24-billion-in-financing-for-hp-push-fuji-xerox-ends-partnership-pact\/","title":{"rendered":"Xerox Secures $24 Billion in Financing for HP Push; Fuji Xerox Ends Partnership Pact"},"content":{"rendered":"\n
\"\"<\/figure><\/div>\n\n\n\n

It took less than a week into 2020 for more news regarding Xerox Corp. to develop from inside and outside its camp, involving both its ongoing quest to align with HP and its relationship with Fuji Xerox.<\/p>\n\n\n\n

On Monday, Xerox Vice Chairman and CEO John Visentin sent a\nletter to HP\u2019s board of directors, confirming it has obtained $24 billion in\n\u201cbinding financial commitments\u201d from Citi, Mizuho and Bank of America to\ncomplete its \u201cvalue-creating combination with HP.\u201d  In the letter, Visentin underscored that\nXerox\u2019s proposal was not subject to a financing contingency, but that Xerox had\nobtained the official commitment to allay HP\u2019s fears.<\/p>\n\n\n\n

Visentin also reiterated Xerox\u2019s belief that the combined\ncompanies would deliver substantial synergies and \u201cmeaningfully enhanced cash\nflow\u201d that could foster increased investments in innovation and drive greater\nreturns for shareholders. He closed with another invitation to sit down at the\nnegotiating table.<\/p>\n\n\n\n

That letter apparently didn\u2019t sit too well with HP, which fired back with its own missive two days later.<\/p>\n\n\n\n

\u201cWe reiterate that the HP Board of Directors\u2019 focus is on\ndriving sustainable long-term value for HP shareholders,\u201d stated the letter,\nsigned by HP CEO Enrique Lores and Chairman Chip Bergh. \u201cYour letter dated\nJanuary 6, 2020 regarding financing does not address the key issue \u2014 that\nXerox\u2019s proposal significantly undervalues HP \u2014 and is not a basis for\ndiscussion.\u201d<\/p>\n\n\n\n

HP has repeatedly rejected the $22-per-share cash and stock offer not just on the financing concerns. Perhaps the bigger stumbling block, from HP\u2019s perspective, is the impact that the outsized debt would have on the company combined stock. Still, Xerox continues to huddle with HP shareholders in an effort to have them pressure HP\u2019s board into talks.<\/p>\n\n\n\n

Fuji Xerox Won\u2019t Renew Sales Partnership<\/strong><\/p>\n\n\n\n

On the other side of the globe, Nikkei Asian Review<\/em> reported that Fuji Xerox informed Xerox that it does not plan to renew its ongoing sales partnership contract, which is slated to expire in March of 2021. The agreement between the companies provides for technology\/brand licenses and sales territories applicable to each company. In addition, Fuji Xerox will change its name to FUJIFILM Business Innovation Corp. as of April 1, 2021.<\/p>\n\n\n\n

After the agreement dissolves March 31 of next year, the new\nFUJIFILM Business Innovation will continue to provide Xerox with its products.\nHowever, whereas Fuji Xerox only sold in the Asia-Pacific region during the\npact and Xerox sold into all others, FUJIFILM Business Innovation will branch\ninto selling in other regions, including North America. Thus, the territory\nlines and restrictions will be erased.<\/p>\n\n\n\n

Research firm IDC notes that the two companies boast a 16.6%\nglobal market share in A3 laser MFPs, with Xerox accounting for 7% of that\nfigure. Now, FUJIFILM Business Innovation could theoretically partner with\nanother manufacturer in North America, while Xerox can also throw its sales hat\ninto the Asian market.<\/p>\n","protected":false},"excerpt":{"rendered":"

It took less than a week into 2020 for more news regarding Xerox Corp. to develop from inside and outside its camp, involving both its ongoing quest to align with HP and its relationship with Fuji Xerox. On Monday, Xerox Vice Chairman and CEO John Visentin sent a letter to HP\u2019s board of directors, confirming it has obtained $24 billion in \u201cbinding financial commitments\u201d from Citi, Mizuho and Bank of America to complete its \u201cvalue-creating combination with HP.\u201d  In the letter, Visentin underscored that Xerox\u2019s proposal was not subject to a financing contingency, but that Xerox had obtained the official commitment to allay HP\u2019s fears. Visentin also reiterated Xerox\u2019s belief that the combined companies would deliver substantial synergies and \u201cmeaningfully enhanced cash flow\u201d that could foster increased investments in innovation and drive greater returns for shareholders. He closed with another invitation to sit down at the negotiating table. That letter apparently didn\u2019t sit too well with HP, which fired back with its own missive two days later. \u201cWe reiterate that the HP Board of Directors\u2019 focus is on driving sustainable long-term value for HP shareholders,\u201d stated the letter, signed by HP CEO Enrique Lores and Chairman Chip Bergh. \u201cYour letter dated January 6, 2020 regarding financing does not address the key issue \u2014 that Xerox\u2019s proposal significantly undervalues HP \u2014 and is not a basis for discussion.\u201d HP has repeatedly rejected the $22-per-share cash and stock offer not just on the financing concerns. Perhaps the bigger stumbling block, from HP\u2019s perspective, is the impact that the outsized debt would have on the company combined stock. Still, Xerox continues to huddle with HP shareholders in an effort to have them pressure HP\u2019s board into talks. Fuji Xerox Won\u2019t Renew Sales Partnership On the other side of the globe, Nikkei Asian Review reported that Fuji Xerox informed Xerox that it does not plan to renew its ongoing sales partnership contract, which is slated to expire in March of 2021. The agreement between the companies provides for technology\/brand licenses and sales territories applicable to each company. In addition, Fuji Xerox will change its name to FUJIFILM Business Innovation Corp. as of April 1, 2021. After the agreement dissolves March 31 of next year, the new FUJIFILM Business Innovation will continue to provide Xerox with its products. However, whereas Fuji Xerox only sold in the Asia-Pacific region during the pact and Xerox sold into all others, FUJIFILM Business Innovation will branch into selling in other regions, including North America. Thus, the territory lines and restrictions will be erased. Research firm IDC notes that the two companies boast a 16.6% global market share in A3 laser MFPs, with Xerox accounting for 7% of that figure. Now, FUJIFILM Business Innovation could theoretically partner with another manufacturer in North America, while Xerox can also throw its sales hat into the Asian market.<\/p>\n","protected":false},"author":166,"featured_media":38000,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1650,82,87,1638],"tags":[362],"_links":{"self":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/37999"}],"collection":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/users\/166"}],"replies":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/comments?post=37999"}],"version-history":[{"count":1,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/37999\/revisions"}],"predecessor-version":[{"id":38001,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/posts\/37999\/revisions\/38001"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media\/38000"}],"wp:attachment":[{"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/media?parent=37999"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/categories?post=37999"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.enxmag.com\/twii\/wp-json\/wp\/v2\/tags?post=37999"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}