Under Pressure from Activist Investor Carl Icahn, Xerox Plans a Spinoff this Year
Under pressure from influential investors many of the American corporate are spinning off their businesses and this time it's Xerox.
Reportedly, Xerox, the name synonymous to office copiers, decided to spin off its services business from the legacy hardware section. The process is expected to be completed by this year's end.
According to sources, a major part of the spinoff will include Affiliated Computer Services, an outsourcing company which was bought by Xerox in 2010 in a $6.4 billion deal. Rest of the company will maintain its focus on what it is best known for, that's its key office supply products like copiers, fax machines and scanners.
Behind this spinoff plan there is Carl C. Icahn, the activist investor who succeeded in campaigning for spinning off PayPal from eBay in 2015.
It's expected that the plan will be made public on Friday when Xerox is scheduled to report its fourth-quarter financial report.
With the spinoff in the cards, Xerox will join the list of many other companied that have faced investor pressure and separated their businesses. In September, Alcoa announced it would split its commodities business from the metal products business. In 2014, Hewlett- Packard also decided to split.