(Reuters) - Xerox Corp, under pressure to find new growth sources amid shrinking demand for its printer and copier business, is in talks for a deal with Japanese camera maker Fujifilm Holdings that could include a change in control of Xerox, the Wall Street Journal reported.
Norwalk, Connecticut-based Xerox been targeted by activist investor Carl Icahn as it struggles to reinvent its legacy business amid waning demand for office printing. Fujifilm is trying to streamline its copier business with a larger focus on document solutions services.
Xerox, which pioneered photocopiers, and Fujifilm already have a five-decade old Tokyo-based copier joint venture focusing on the Asia Pacific region including Japan and China, leaving Xerox to cover the rest of the world.
Xerox "desperately" needed new leadership as it was slow to launch new products and increase revenue, Icahn wrote in an open letter to shareholders in December, a day after nominating four members to the board. He is Xerox's biggest shareholder with a stake of 9.7 percent.
Xerox spun off its business process outsourcing unit in 2016 and separated into two independent, publicly traded companies.
The copier joint venture, Fuji Xerox, was created in 1962 and now accounts for nearly half of Fujifilm's sales and operating profit.
Past deals include the 2015 purchase of Cellular Dynamics International Inc, a U.S. biotechnology firm that makes human-induced pluripotent stem (iPS) cell lines and tissue cells.
Last August, it said it aimed to spend 500 billion yen ($4.49 billion) in strategic acquisitions over three years.
($1 = 111.7000 yen)
(Reporting by Uday Sampath in Bengaluru, Minami Funakoshi and Makiko Yamazaki in Tokyo; Editing by Grant McCool and Muralikumar Anantharaman)
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