Xerox will split into two companies

Moscow. January 29. Xerox Corp. plans to divide its operations into two separate companies, as well as give a number of seats in the Board of Directors of one of these companies known investor and billionaire Carl Aikana, writes the newspaper the Wall Street Journal.

According to sources of the newspaper, Xerox will split into two public companies, one of which will include its operations for the production of office equipment, in another transaction on rendering services in the sphere of managing business processes.

The company will make appropriate announcement on Friday, along with the publication of the report for the last year and forecasts for the current year, the sources noted.

Xerox, faced with the slowdown in growth is key for her business for the production of office equipment, in 2009 the company acquired Affiliated Computer Services Inc. more than $6 billion This allowed her to significantly expand its operations in the management of business processes, including document processing, management of call centers and other services for government agencies and companies.

However, in recent years, Xerox deteriorate. On Friday, the company is expected to report lower profit and revenue in 2015 for the fourth year in a row.

In October last year, the CEO of Xerox Ursula burns said that the company is conducting a strategic review of its operations.

A month after that, ican reported that its hedge Fund owns 8,1% of the shares of Xerox. With such a share of ican is the second largest shareholder after Vanguard Group Foundation, and the billionaire made it clear that he intends to discuss with management the company’s prospects of its development.

According to sources, the parties have negotiated and how the management of Xerox and aycan, came to the conclusion that the company needs to split transactions.

In Xerox, the hedge Fund of Ikana will get three seats on the Board of Directors of the company which will be engaged in providing business services, the sources noted.

Xerox annual sales of $20 billion, the market value of the company halved. The company’s shares have lost a quarter of its value last year and from the beginning of 2016 price fell another 13%.

In the fall of 2015 competitor Xerox – Hewlett-Packard – was also divided into two companies, one engaged in the production of personal computers and printers, the second edition of corporate servers and services.