Xerox is exploring the potential sale of its Customer Financing business unit as part of a broader corporate reorganization, the struggling printer and copier company confirmed this morning in an SEC filing.
ChannelE2E is exploring if or how such a deal will potentially impact leasing and financing for managed print services (MPS) engagements with partners.
According to a statement from the company:
"In connection with the Company's initiative to simplify and optimize its operations, the Company is currently exploring the possibility and feasibility of a strategic transaction involving its customer financing business and/or related assets."
Xerox cautioned that no decision or commitment to such a move has been made.
Xerox Reorganization: Five Focus Areas
Xerox abandoned a merger with FujiFilm and shook up its executive team in 2018, then announced a corporate reorganization plan on March 6, 2019. That reorganization creates a new holding company -- which could make it easer for the company to spin off or rethink various business units. The effort calls for Xerox to focus on five major strategies:
- Improve the company's core technology business
- Expand services and software
- Capitalize on the SMB opportunity
- Transform the digital experience for clients
- Drive innovation and new business growth
The reorganization follows another challenging year for the technology company. Among the key financial indicators:
- Xerox revenues were $9.83 billion in 2018, down from $10.27 billion in 2017, the company disclosed in January 2019.
- Net income was $361 million in 2018, better than the $195 million in 2017. The improvement reflects tighter cost controls at the company.
Printer Companies In Transition
Every major printer company has been rethinking and repositioning its business amid the shift toward cloud, mobile and as-a-service technologies.
The efforts include IT as a service financing models, managed print services, and other subscription services that strive to create predictable recurring revenue models. Some of office equipment companies, particularly Konica Minolta and Sharp, have been acquiring MSPs & IT service providers to push deeper into the SMB sector.
