Xerox’s Merger With Fuji Xerox

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. and Morgan Stanley & Co. LLC are serving as exclusive financial advisors to Fujifilm, and Morrison & Foerster LLP is acting as legal counsel. Centerview Partners LLC is serving as exclusive financial advisor to Xerox and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel.

FUJIFILM Holdings Corporation (“Fujifilm”) (TSE: 4901) and Xerox Corporation (“Xerox”) (NYSE: XRX) have entered into a definitive agreement to combine Xerox and their longstanding Fuji Xerox joint venture. The combined company will be a global leader in innovative print technologies and intelligent work solutions with annual revenues of $18 billion and leadership positions in key geographic regions.

This proposed combination provides Xerox shareholders with significant cash at closing, as well as a substantial interest in the significantly enhanced combined company. Under the terms of the agreement, Xerox shareholders will receive a $2.5 billion special cash dividend, or approximately $9.80 per share1, funded from the combined company’s balance sheet, and own 49.9% of the combined company at closing. The cash dividend represents more than 30% of Xerox’s unaffected share price of $30.35 based on closing share price as of January 10, 2018. Fujifilm will own 50.1% of the combined company and provide important operational support and transformational leadership.

The transaction has been unanimously approved by the Boards of Directors of both Fujifilm and Xerox. The combined company will be named “Fuji Xerox” and trade on the NYSE under the ticker XRX. The new Fuji Xerox will have dual headquarters in Norwalk, CT, U.S. and in Minato, Tokyo, Japan, with presence in over 180 countries. The combined company will go to market and maintain the iconic “Xerox” and “Fuji Xerox” brands within its respective operating regions.

Paul, Weiss is representing Xerox Corporation with a team including corporate partners Robert Schumer (Picture), Ariel Deckelbaum, Thomas de la Bastide, John Kennedy, Kelley Parker, Tong Yu, Jeanette Chan and Manuel Frey and counsel Caith Kushner, Patricia Vaz de Almeida, Bruce Gruder and David Lee; international trade counsel Richard Elliott; employee benefits partner Andrew Gaines and counsel Reuven Falik; intellectual property partner Chuck Googe and counsel Jonathan Ashtor; tax partners Jeffrey Samuels and David Mayo and counsel Alyssa Wolpin; litigation partners Andrew Forman, Jay Cohen, Jaren Janghorbani, Rick Rule, Brad Karp and Stephen Lamb and counsel Peter Jaffe; real estate partner Salvatore Gogliormella; environmental counsel William O’Brien; and antitrust counsel Marta Kelly.

Morrison & Foerster LLP is advising FUJIFILM Holdings Corporation with a team including corporate/M&A partners Gary Smith (Tokyo), Jeff Schrepfer (Tokyo) and Jeff Bell (New York), and also includes corporate partners Hisateru Goda (Tokyo), Masato Hayakawa (Tokyo), and Scott Lesmes (Washington D.C.), and corporate counsel Rika Saeki (Tokyo) and Yukitoshi Uwatoko (Tokyo), as well as partner Jeff Jaeckel (Washington D.C.) for antitrust, and counsel Aki Bayz (Washington D.C.) and David Newman (Washington D.C.) for regulatory issues, and Amanda Hines Gold (San Francisco) for compensation and benefits work.

 

Involved fees earner: Robert Schumer – Paul Weiss Rifkind Wharton & Garrison; Ariel Deckelbaum – Paul Weiss Rifkind Wharton & Garrison; John Kennedy – Paul Weiss Rifkind Wharton & Garrison; Kelley Parker – Paul Weiss Rifkind Wharton & Garrison; Tong Yu – Paul Weiss Rifkind Wharton & Garrison; Jeanette Chan – Paul Weiss Rifkind Wharton & Garrison; David Lee – Paul Weiss Rifkind Wharton & Garrison; Patricia Vaz de Almeida – Paul Weiss Rifkind Wharton & Garrison; Bruce Gruder – Paul Weiss Rifkind Wharton & Garrison; Richard Elliott – Paul Weiss Rifkind Wharton & Garrison; Peter Jaffe – Paul Weiss Rifkind Wharton & Garrison; Andrew Gaines – Paul Weiss Rifkind Wharton & Garrison; Reuven Falik – Paul Weiss Rifkind Wharton & Garrison; Charles Googe – Paul Weiss Rifkind Wharton & Garrison; Jonathan Ashtor – Paul Weiss Rifkind Wharton & Garrison; Jeffrey Samuels – Paul Weiss Rifkind Wharton & Garrison; David Mayo – Paul Weiss Rifkind Wharton & Garrison; Alyssa Wolpin – Paul Weiss Rifkind Wharton & Garrison; Andrew Forman – Paul Weiss Rifkind Wharton & Garrison; Jay Cohen – Paul Weiss Rifkind Wharton & Garrison; Jaren Janghorbani – Paul Weiss Rifkind Wharton & Garrison; Charles Rule – Paul Weiss Rifkind Wharton & Garrison; Brad Karp – Paul Weiss Rifkind Wharton & Garrison; Stephen Lamb – Paul Weiss Rifkind Wharton & Garrison; Salvatore Gogliormella – Paul Weiss Rifkind Wharton & Garrison; William O’Brien – Paul Weiss Rifkind Wharton & Garrison; Marta Kelly – Paul Weiss Rifkind Wharton & Garrison; Charles Rule – Paul Weiss Rifkind Wharton & Garrison; Thomas de la Bastide – Paul Weiss Rifkind Wharton & Garrison; Manuel Frey – Paul Weiss Rifkind Wharton & Garrison; Caith Kushner – Paul Weiss Rifkind Wharton & Garrison; Gary Mitchel Smith – Morrison Foerster; Jeff Schrepfer – Morrison Foerster; Jeffery Bell – Morrison Foerster; Hisateru Goda – Morrison Foerster; Rika Saeki – Morrison Foerster; Yukitoshi Uwatoko – Morrison Foerster; Jeff Jaeckel – Morrison Foerster; Panagiotis Bayz – Morrison Foerster; David Newman – Morrison Foerster; Amanda Hines Gold – Morrison Foerster; Masato Hayakawa – Morrison Foerster; Scott Lesmes – Morrison Foerster; Yukitoshi Uwatoko – Morrison Foerster;

Law Firms: Paul Weiss Rifkind Wharton & Garrison; Morrison Foerster;

Clients: Xerox Corporation; Fujifilm Corp;

 

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Author: Michael Patrini