Xerox to split into two publicly traded companies

“Xerox is not known to be at the forefront of those movements”. Midas+, a Xerox company focused on the healthcare market, also acquired Healthy Communities Institute, a Berkeley, California-based company that offered a software-as-a-service platform that centralizes proprietary, healthcare and community data to help hospitals and other health organizations manage population health. “The decision-making process has to be about the business”.

Headquartered in Norwalk, Connecticut, Xerox has more than 130,000 employees in over 180 countries.

Those two business lines, essentially hardware and outsourcing services, never really gelled together.

“The plan is companywide and will include a thorough review of… how we operate”, Burns said Friday. But in a CNBC interview Friday morning, Burns said that wasn’t the case.

Icahn rebranded himself as an activist investor and outspoken shareholder advocate after gaining fame as a corporate raider in the 1980s.

“Similarly, document technology was the industry-equipment sales revenue market-share leader for the 24th consecutive quarter and, through our continued focus on performance and productivity, maintained its strong margins”.

Under pressure from the billionaire, eBay Inc. split its payments business Paypal Holdings Inc., while Manitowoc Co.

Icahn did not return a phone call Thursday.

Carl Langsenkamp, a spokesman for Xerox, said in an emailed statement that Burns will discuss her recommendations for the future leadership of the companies with the board “at the appropriate time”, noting that “Ursula is – first and foremost – focused on delivering on our 2016 plan and executing the separation and strategic transformation we announced today”. “Fortunately when we did speak to him, as you know he’s a large holder of our shares, he agreed with the outcome we reached”, she said. “Every year Xerox has to drive automation, innovation and to drive productivity in its workforce”.

Total revenues were $4.65 billion in the quarter, down 8 percent or 5 percent in constant currency year-over-year.

Earnings came in at 32 cents per share, beating the average estimate of 28 cents.

Xerox’s results had failed to meet analyst expectations since its $6.4bn acquisition of Affiliated Computer Services in 2010.

Xerox, however, had to make a mid-term change in its IT outsourcing business strategy. As for her role, Burns said that discussion is “purposefully… off the table”, she told Bloomberg TV.

Now Xerox is facing perhaps a more existential threat: environmentally conscious workers and their penny-pinching bosses who want to use less paper, not more, and have relegated the office copier and printer to an afterthought. Revenue was reported as $18.05 billion.

Meanwhile, the BPO firm, with about $7 billion in 2015 revenue, will work on managing, simplifying and automating transaction-heavy processes. Document technology revenue dropped 12 per cent to US$7.4 billion.

Both business process outsourcing and document management remain attractive businesses and it’s very possible that instead of one 800-pound enterprise gorilla, there will now be two, ready to take on opportunities in the marketplace.

ACS was then also the only servicer for the portion of federal loans originated by the government, about one-fourth of the volume.