By the end of 2016, Xerox will split into distinct companies, a $7 billion business services firm and an $11 billion document technology firm, according to a Friday announcement from the company.
"We are creating two companies that will be market leaders benefiting from enhanced strategic and operational focus [with] distinct and clear financial profiles, capital allocation policies and simplified organization structures," Ursula Burns, Xerox's chairman and CEO, said on conference call, according to a USA Today report. "As standalone companies, they will have compelling investment cases and be better positioned to capitalize on growth opportunities and expand margins and market share.”
Billionaire investor Carl Icahn announced a large stake in Xerox in 2015 and has say over three of the nine seats on the business services company’s board of directors, according to an Associated Press report. The business services company will become Xerox's publicly traded company, and the names and leadership for both new companies remain to be determined.
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