Tech giant Xerox has completed the separation of its business services division – now known as Conduent Incorporated - creating two multi-billion dollar publicly-traded companies.
The company announced the plan last year, naming Jeff Jacobson as CEO of its document technology and graphics business - which retains the Xerox Corporation name - and Ashok Vemuri as CEO of the smaller Conduent business that will focus on business process outsourcing (BPO) services.
A spokesperson for Fuji Xerox Australia says the split will have no impact on the local operation, which is a totally separate activity.
“Today is an historic day for Xerox,” said Jacobson. “The successful completion of the separation sharpens our market focus and commitment to our customers. I am confident the transformational actions we are implementing position Xerox for long-term success and unlocks shareholder value.”
Xerox received a cash transfer from Conduent of $US1.8 billion, which it intends to use, along with cash on hand, to retire approximately $US2.0 billion in debt.
Members of the company’s executive leadership team, employees and customers celebrated the milestone by ringing the opening bell at the New York Stock Exchange (pictured, above).
Xerox’s focus on growing its global leadership in digital print technology and services will help customers innovate how they communicate, connect and work more productively. The company’s financial model and revitalized business strategy will enable strong free cash flow generation and margin expansion, as well as targeted investments in attractive growth areas, such as document outsourcing and solutions for small- and medium-sized businesses, said a company press release.
Under the terms of the separation, Xerox shareholders received one share of Conduent common stock for every five shares of Xerox common stock they held as of the close of business on Dec. 15, 2016.