Xerox Corp. is soon splitting into two companies, one for the printer operations and the other for business process outsourcing. They have, for years, tried to integrate the businesses and have finally decided to divide into this model. Carl Icahn will have three board seats on the outsourcing company as he tweeted on Friday that “the separation will greatly enhance value for Xerox Corp shareholders.”
As Xerox Chief Executive Officer Ursula Burns said, “The reason why it was easy to get to a decision is because we do have two businesses that rotate around two different axes.”
Xerox’s shares have fallen more than 30% in the last 12 months and it has been trying to turn itself around by focusing on software and services. Burns explained that the leadership and the names of the new companies have not yet been decided.