Xerox Completes Split with Conduent, Retains Document Outsourcing
As of Tuesday morning, Xerox Corp. and Conduent Inc. are officially two separate companies. Xerox announced it had completed the separation of Conduent Inc., its business process outsourcing business, creating two publicly traded companies.
In-plants assuming this means an end to Xerox's document outsourcing business should take note, however; Conduent will not include Xerox’s Large Enterprise Operations/Document Outsourcing (MPS) organizations, which handle document management and document outsourcing. They will remain part of Xerox Corp.
On Wednesday, members of the company’s executive leadership team, employees and customers celebrated the milestone by ringing the opening bell at the New York Stock Exchange.
“Today is an historic day for Xerox. The successful completion of the separation sharpens our market focus and commitment to our customers,” said Xerox CEO Jeff Jacobson. “I am confident the transformational actions we are implementing position Xerox for long-term success and unlocks shareholder value.”
Xerox’s focus on growing its global leadership in digital print technology and services will help customers innovate how they communicate, connect and work more productively. The company’s financial model and revitalized business strategy will enable strong free cash flow generation and margin expansion, as well as targeted investments in attractive growth areas, such as document outsourcing and solutions for small- and medium-sized businesses.
Under the terms of the separation, on the distribution date of Dec. 31, 2016, Xerox shareholders received one share of Conduent common stock for every five shares of Xerox common stock they held as of the close of business on Dec. 15, 2016, the record date for the distribution.
In connection with the spin-off, Xerox received a cash transfer from Conduent of $1.8 billion, which it intends to use, along with cash on hand, to retire approximately $2.0 billion in debt.
In other Xerox news, the company launched a modern day version of its iconic Brother Dominic commercial from four decades ago. Here's a look: