Business News

Xerox restructures its business to create a holding company

Key Points
  • The reorganization is expected to be implemented in mid-2019 and the new holding company's shares will trade on the New York Stock Exchange under its current ticker "XRX".
A Xerox banner outside the New York Stock Exchange on Jan. 23rd, 2018.
Adam Jeffery | CNBC

Xerox said on Thursday it will implement a structure in which the printer maker will become a wholly owned unit of a new holding company.

The reorganization is expected to be implemented in mid-2019 and the new holding company's shares will trade on the New York Stock Exchange under its current ticker "XRX".

A holding company structure allows a firm to lower its tax bill, protect patents and diversify its unit's businesses efficiently. In 2015, Google formed a holding company, Alphabet, with distinct units under it.

Xerox scrapped a complex deal last year to merge with Fujifilm Holdings after it ran into strong opposition from activist investors Carl Icahn and Darwin Deason.

In the last two quarters, Xerox topped profit estimates and undertook initiatives to streamline its business under the new management led by Chief Executive Officer John Visentin, an Icahn appointee.