Xerox Corp.is planning to announce it is splitting into two companies Friday, when it reports is fourth-quarter and year-end financial results, sources have told the Wall Street Journal. The other is a business process outsourcer that will help companies with automating and simplifying business processes. After years of upheaval Hewlett-Packard opted to split itself into two separate entities. As part of the shake-up, Mr Icahn won the ability to appoint three members of the board of the services company. It decided in December 2014 to sell its ITO business to Atos for $1.05 billion, as this business had not acquired the scale to enable Xerox to offer its customers a differentiated offering.
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Burns pushed to acquire ACS for $US6 billion ($8.4 billion) in a bid to diversify Xerox’s business.
Xerox said it would increase its quarterly dividend 11 percent to 7.75 cents per share of common stock. The board agreed, she said, that “a comprehensive review of structural options for the company’s portfolio is the right decision at this time”. The company had a P/B ratio of 1.01 and P/S ratio of 0.56, both near their respective two-year low.
The split continues a trend in corporate America of diversified companies breaking up into more highly specialized pieces.
The firm is focusing on software and services to offset the decline in traditional hardware such as office printers.
Last year, Xerox sold its IT outsourcing business to Atos SE for $966 million. By contrast, in the most recent trailing 12 months, Xerox revenue has been $18.4 billion. She added that her future role in either company has yet to be determined. It was so popular that by the end of 1961 Xerox took over $60 million in revenue, and by 1965 over $500 million. We asked George Conboy of Brighton Securities how a company might achieve such steep savings. “We didn’t have to go from making food to making airplanes”.
But that formula has been sputtering.
Xerox has been grappling with declining annual revenue for four consecutive years. The company’s Irish turnover is estimated at €109.2 million.
Founded in Rochester, N.Y., at the turn of the last century, Xerox got its big break from a Queens, N.Y.-based inventor Chester Carlson, who produced the first xerographic image in 1938.
Xerox said that the Document Technology company will lead the market with superior technology, solutions and innovations that optimize document management in an increasingly interconnected, digital world.
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Meanwhile, researchers at Xerox’s Palo Alto Research Center developed technologies, such as Ethernet and the graphical user interface, that were the basis of many key subsequent technology developments.
