Printer manufacturer Xerox in talks for deal with Japan's Fujifilm: Report

Xerox needs new leadership as it was slow to launch new products and increase revenue

Printer manufacturer Xerox Corp is in talks to do a deal with Japanese camera maker Fujifilm Holdings Corp that could include a change in control of Xerox, the Wall Street Journal reported on Wednesday, citing people familiar with the matter.

However, a full takeover of Xerox is not on the table, the newspaper said, citing one of the people.

Xerox declined to comment, while Fujifilm said it would not comment on speculative reports.

Xerox "desperately" needed new leadership as it was slow to launch new products and increase revenue, activist investor Carl Icahn wrote in an open letter to shareholders in December, a day after nominating four members to the board.

Xerox spun off its business process outsourcing unit in 2016 and separated into two independent, publicly traded companies.

Last August, Fujifilm said it aimed to spend 500 billion yen ($4.49 billion) in strategic acquisitions over three years as it seeks growth outside its shrinking photographic film business.

Xerox and Fujifilm created a joint venture, Fuji Xerox, in 1962. The company is now 75 per cent owned by Fujifilm and 25 per cent by Xerox.

($1 = 111.4800 yen)