Japanese imaging company Fujifilm announced Wednesday it will combine with and take majority ownership of American business company Xerox, in a deal worth more than $6 billion.
The new company, Fuji Xerox, will be owned 50.1 percent by Fujifilm and will have Xerox CEO Jeff Jacobson lead the new company.
Xerox shareholders will also receive a $2.5 million cash dividend, or about $9.80 per share.
"The proposed combination has compelling industrial logic and will unlock significant growth and productivity opportunities for the combined company," Jacobson said in a statement.
"The new Fuji Xerox will be better positioned to compete in today's environment with truly global scale, increased presence in fast-growing markets, and innovation capabilities to effectively meet our customers' rapidly-evolving demands."
The deal is worth about $6.1 billion.
Fujifilm CEO Shigetaka Komori said he's "confident" the partnership will help with the reinvention of the companies.
The merger, which was unanimously approved by the boards of directors of both Fujifilm and Xerox, will trade on the New York Stock Exchange as XRX.
"Upon careful consideration of all alternatives available to the company, the Board of Directors concluded that this combination is clearly the best path to create value for our shareholders," Robert J. Keegan, chairman of Xerox's Board of Directors, said.
"We are excited to strengthen our longstanding relationship with Fujifilm as we enter the next phase of Xerox's transformation journey."
Fuji Xerox will have dual headquarters in both Norwalk, Ct., in the United States and in Tokyo.
According to Xerox, the combined company is expected to deliver at least $1.7 billion in total annual cost savings by 2022 -- with most of it by 2020.
© 2018 UPI International Top News under contract with NewsEdge/Acquire Media. All rights reserved.
Image credit: iStock/Artist's Concept.