Xerox To Split Into Two Companies: One For Documents, One For Processes

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But according to the Wall Street Journal, "that formula has been sputtering". Sales from services, which includes business process and document outsourcing, fell 4.7 per cent to US$10.1 billion.

The announcement, made today, follows a review of the company's business options that was launched in October.

With operations in more than 180 countries, Xerox Corporation (XRX - Analyst Report) is a leader in the development, manufacture, marketing, servicing and financing of document equipment globally.

Xerox shares were up almost 5%, at $9.69, in trading Friday. He would also select a person to observe and advice the Board committee in the search process for a chief executive officer.

Susquehanna Financial Group LLP analyst James Friedman said he thinks Xerox's services business once it separates is "an easy acquisition for someone but they will try and grow it themselves". Last year, Icahn took a stake in Xerox and said he meant to discuss operational improvements and strategic alternatives with the company's board. We remain focused on serving our clients and leading in the most attractive market segments where we are best positioned to compete and differentiate.

Icahn stated that he holds a 9.12% stake in Xerox, an increase from the 8.13% reported last month.

In 2014, Hewlett-Packard performed a similar split, dividing its software and services operations from its printer and computer products. Meanwhile, a company statement said it is expected to complete the process of the split by the end of 2016, which could save $2.4 billion for Xerox Corp (XRX.N) over the next three to four years. In connection with this move, the company has signed an agreement with investor Carl Icahn regarding the governance of the Business Process Outsourcing company that will be created through the initiative. Document Technology margin was 11.8 percent.

The separation would unwind what had been Ms. Burns's signature deal, one that she started pursuing shortly after being named Xerox's CEO in 2009. With approximately $7 billion in 2015 revenue - more than 90% of which is annuity based - the company is focused on attractive growth markets including transportation, healthcare, commercial and government services. The shares closed down -0.05 points or -0.54% at $9.23 with 90,78,040 shares getting traded. She added that her future role in either company has yet to be determined. Businesses services, with 104,000 employees, generated 2015 sales of $7 billion. The company was founded in 1906 and is headquartered in Norwalk, Connecticut.

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