â€śA core tenet of the strategic transformation we are embarking on today is changing and improving the way we operationalize our businesses. We have identified a plan to deliver cumulative reductions of $2.4 billion over the next three years as part of this process. I have instructed our teams to begin work immediately to deliver the efficiencies needed to achieve our goal,â€ť Burns added.
Xerox will begin the process to separate into the two companies while it finalizes the transaction structure. Xeroxâ€™s objective is to complete the separation by year-end, subject to customary conditions, receipt of regulatory approvals, tax considerations, securing any necessary financing and final approval of the Xerox Board.
The transaction is intended to be tax-free to Xerox shareholders for federal income tax purposes.
Until the separation is complete, Xerox will continue to operate as a single company and it will continue to be business as usual for our customers and employees.
Lazard and Goldman Sachs & Co are serving as financial advisors and Cravath, Swaine & Moore LLP is serving as legal advisor to Xerox. Centerview Partners is serving as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison LLP is serving as legal advisor to the Board of Directors.
Conference Call Details
Xerox will be hosting a conference call today at 10:00 a.m. ET. The live event can be accessed online at http://edge.media-server.com/m/p/rykhkkz7.
An archived audio webcast of this event will be available shortly following the conference call.
Additional information regarding the separation can be found on www.XeroxPathForward.com.
Xerox is helping change the way the world works. By applying our expertise in imaging, business process, analytics, automation and user-centric insights, we engineer the flow of work to provide greater productivity, efficiency and personalization. We conduct business in 180 countries, and our more than 140,000 employees create meaningful innovations and provide business process services, printing equipment, software and solutions that make a real difference for our clients â€“ and their customers. Learn more at www.xerox.com.
This release contains â€śforward-looking statementsâ€ť as defined in the
Private Securities Litigation Reform Act of 1995. The words
â€śanticipate,â€ť â€śbelieve,â€ť â€śestimate,â€ť â€śexpect,â€ť â€śintend,â€ť â€świll,â€ť
â€śshouldâ€ť and similar expressions, as they relate to us, are intended to
identify forward-looking statements. These statements reflect
managementâ€™s current beliefs, assumptions and expectations, including
with respect to the proposed separation of the Business Process
Outsourcing ("BPO") business from the Document Technology and Document
Outsourcing business, the expected timetable for completing the
separation, the future financial and operating performance of each
business, the strategic and competitive advantages of each business,
future opportunities for each business and the expected amount of cost
reductions that may be realized in the cost transformation program, and
are subject to a number of factors that may cause actual results to
differ materially. Such factors include but are not limited to: changes
in economic conditions, political conditions, trade protection measures,
licensing requirements and tax matters in the United States and in the
foreign countries in which we do business; changes in foreign currency
exchange rates; our ability to successfully develop new products,
technologies and service offerings and to protect our intellectual
property rights; the risk that multi-year contracts with governmental
entities could be terminated prior to the end of the contract term and
that civil or criminal penalties and administrative sanctions could be
imposed on us if we fail to comply with the terms of such contracts and
applicable law; the risk that our bids do not accurately estimate the
resources and costs required to implement and service very complex,
multi-year governmental and commercial contracts, often in advance of
the final determination of the full scope and design of such contracts
or as a result of the scope of such contracts being changed during the
life of such contracts; the risk that subcontractors, software vendors
and utility and network providers will not perform in a timely, quality
manner; service interruptions; actions of competitors and our ability to
promptly and effectively react to changing technologies and customer
expectations; our ability to obtain adequate pricing for our products
and services and to maintain and improve cost efficiency of operations,
including savings from restructuring actions and the relocation of our
service delivery centers; the risk that individually identifiable
information of customers, clients and employees could be inadvertently
disclosed or disclosed as a result of a breach of our security systems;
the risk in the hiring and retention of qualified personnel; the risk
that unexpected costs will be incurred; our ability to recover capital
investments; the risk that our Services business could be adversely
affected if we are unsuccessful in managing the start-up of new
contracts; the collectability of our receivables for unbilled services
associated with very large, multi-year contracts; reliance on third
parties, including subcontractors, for manufacturing of products and
provision of services; our ability to expand equipment placements;
interest rates, cost of borrowing and access to credit markets; the risk
that our products may not comply with applicable worldwide regulatory
requirements, particularly environmental regulations and directives; the
outcome of litigation and regulatory proceedings to which we may be a
party; the possibility that the proposed separation of the BPO business
from the Document Technology and Document Outsourcing business will not
be consummated within the anticipated time period or at all, including
as the result of regulatory, market or other factorsÍľ the potential for
disruption to our business in connection with the proposed separationÍľ
the potential that BPO and Document Technology and Document Outsourcing
do not realize all of the expected benefits of the separation; and other
factors that are set forth in the â€śRisk Factorsâ€ť section, the â€śLegal
Proceedingsâ€ť section, the â€śManagementâ€™s Discussion and Analysis of
Financial Condition and Results of Operationsâ€ť section and other
sections of our Quarterly Reports on Form 10-Q for the quarters ended,
March 31, 2015, June 30, 2015 and September 30, 2015 and our 2014 Annual
Report on Form 10-K filed with the Securities and Exchange Commission.
Xerox assumes no obligation to update any forward-looking statements as
a result of new information or future events or developments, except as
required by law.