It’s a new chapter for Xerox. The company announced Tuesday it has officially split into two businesses, one that retains the Xerox name, which will be focused on document technology and the other called Conduent, which will concentrate on business services.
The document technology business makes up the majority of the 6,000 or so people employed by Xerox in the Rochester area, many of them located at the company’s facilities in Webster. That business is still headquartered in Connecticut. Conduent’s corporate HQ is in New Jersey.
“Today is an historic day for Xerox. The successful completion of the separation sharpens our market focus and commitment to our customers,” said Xerox CEO Jeff Jacobson. “I am confident the transformational actions we are implementing position Xerox for long-term success and unlocks shareholder value.”
Xerox Chairman & CEO Ursula Burns gives up the CEO title, but still has the role as chairman of the new 'Xerox.'
Members of the company’s executive leadership team, employees and customers will celebrate the milestone by ringing the opening bell at the New York Stock Exchange (NYSE) on Wednesday morning.
Under the terms of the separation, on the distribution date of Dec. 31, 2016, Xerox shareholders received one share of Conduent common stock for every five shares of Xerox common stock they held as of the close of business on Dec. 15, 2016, the record date for the distribution.
In connection with the spin-off, Xerox received a cash transfer from Conduent of $1.8 billion, which it intends to use, along with cash on hand, to retire approximately $2.0 billion in debt.