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Xerox may sell leasing finance unit

Wednesday, 18 July 2018
By Print21
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Xerox Corp is considering the sale of its leasing unit that lends money to customers to rent printers and equipment, according to a report by Reuters. The move would make the company more attractive to potential buyers following the termination of its $6.1 billion sale to Fujifilm Holdings.

Divesting the leasing unit would remove about $3.6 billion in debt.

Billionaire activist investors Carl Icahn and Darwin Deason, who took control of Xerox earlier this year and scuppered the Fujifilm proposal, are preparing to launch an auction for the iconic US company, which has a market capitalization of $6.4 billion and total debt of $5.5 billion.

Xerox, which declined to comment on the report, has not yet made a final decision on selling the leasing finance unit, sources told Reuters.

Private equity firm Apollo Global Management reportedly approached Xerox in May to express its interest in acquiring the company.

Last month, Xerox announced plans to sell Xerox products directly into the growing Asia Pacific market.

In a letter to Fujifilm chairman Shigetaka Komori, Xerox CEO John Visentin said a $1 billion lawsuit filed in New York by Fujifilm against Xerox was “nothing more than a desperate, misguided negotiating ploy” to save the takeover proposal.

Visentin says Fujifilm’s expectation that Xerox will come to Fujifilm with a new proposal for a combination transaction “is simply delusional. It will not happen.”

 

 

 

 

One Response to “Xerox may sell leasing finance unit”

  1. July 19, 2018 at 9:01 am,

    Flavio
    said:

    Oce did that 10 years ago and went bust. They didn’t realise how much they relied on the monthly rental income stream and how inflexible third party leasing companies are when you want to upgrade mid term.

    The financing arm is usually the most profitable side of the business. High interest rate to customers, low rates for them and if the customer goes bust you get you equipment back and at the end of the contract you get your gear back.

    How often do you hear “you should rent it, who wants a 5 year old copier” Then find out it gets “refurbed” and put back out in the field

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