Xerox, HP, Fuji Film, Fuji Xerox "It Just Keeps Getting Curiouser & Curiouser"

 

Just want I needed today was some blockbuster news about Xerox, Fuji Film, Fugi Xerox and HP.  Don't these people know I have a quota to reach by the end of the year!

If you've been hiding all day and not staying in touch with industry events, today was one of those days that has everyone talking.

Early this AM a press release comes out that states Xerox and Fuji Film has reached a settlement in their law suit.  That's the one where Fuji Film sued Xerox because Xerox backed out of the sale. 

Xerox has agreed to see it 25% stake in Fuji Xerox to Fuji Film (a joint venture developed many years ago) for something like $2.2 billion dollars. Keep in mind that Fuji Film filed a lawsuit for 2 billion or so in damages when Xerox backed out of the sale.  Fuji Xerox is now 100% owned by Fuji Film and Xerox has an agreement in place where they can still purchase office MFP's (A4 & A3) for "x" amount of time.  In addition Fuji Film drops the lawsuit against Xerox. Xerox also agreed to sell Xerox its stake in another smaller joint venture with Fuji Xerox to Fujifilm.

Big Takeaway

The biggest takeaway I read was the one where Fujifilm Chief Executive Shigetaka Komori stated “We can now expand our sales territory...and launch new products,” because Fuji Xerox will now be able to sell copiers not just to Xerox, but also to other brands in the United States and Europe".

For me this is HUGE!  Somewhere down the road Xerox will have to compete with their own devices. I'm an old hand at that game been fighting it for years with Ricoh Direct and all of the dealers that sell Ricoh in New Jersey. 

Thoughts

One of my first thoughts is that other manufacturers can now purchase these MFP's from Fuji Xerox.  Thus if one of the copier manufacturer has a poor showing in color A4, they can OEM those devices from Fuji Xerox. The same will hold true for A3 color, A4 black and A3 balck MFP's. I'd bet dollars to doughnuts that some traditional copier manufacturers have already made the call to Fuji Xerox to fill gaps in their MFP line.

My second thought is that a Mega Dealer approaches Fuji Xerox and cuts a sole source deal here in the US.  Branding for the MFP's would or should have the Mega Dealer logo and brand. Think about that one for a moment...... are you done thinking yet?  Let's maybe think about Flex, Dex or maybe Marco, imagine the ramification of one of the major copier manufacturers losing one of those accounts. 

I'm also thinking that sometime in the near future the Xerox name is going bye-bye also.

Threads

Here's some of the traction that we had on Linkedin this afternoon.

Xerox Wants HP

Did you see the last thread from Don Quick? 

Yea, while I was out on appointments I think the Wall Street Journal released news that Xerox was putting in an offer to buy HP!  I was like WTF!  Just a few minutes ago the Miami Herald reported that HP did receive an offer from Xerox.

Today was a good day for those that are holding HP and Xerox stock both were up on the market.

While I'm far from being any type of an accountant I did read one article that stated Xerox could pull off the financing for this purchase and that they had acquired financing.  Xerox has something like 928 million is cash, then the 2.2 billion from Fuji Film, however they have a debt service due in December of 528 million.  I'm guessing they would need 30 billion in financing.

I asked myself what would be the benefit to Xerox other than making their shareholders a boat load of cash.  Xerox gets Indigo technology, Samsung technology, HP technology, and the cash cow of the consumables. In addition they would not have to purchase MFP's from Fuji Film in the future.

I'm sure there are many other benefits if this sale happens. At this point I think that the sale is a bit iffy.  But we've seen crazier things happen in our industry over the years.

I don't think anyone saw this coming, and kudos to John Visentin and team if they can pull this off.

-=Good Selling=-

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HP's head office is in Palo Alto, California.  How could the Miami Herald in Florida, not known as a beacon of copier information and clear across the country, have this kind of information?  Did someone at Xerox (?) deliberately leak confidential information to publicize a rumor?

dimaxusa posted:

Fuji might be the modern version of Konica’s Ikon CPP500 & Danka. What’s old could be new again. But don’t worry, according to all the naysayers, the industry has been dead since copy machines were taught how to print, scan and fax. Yes that right, I said copy machines, not MFP,MFD, XDF or whatever kids are calling them these days. You wanna make $200k per year selling gear, come and move to Wisconsin and we’ll so you the path to what could be...

@dimaxusa I agree what comes around goes around, will be interesting to see how things pan out. I'm having one of my best years in the business, however the last two months have been terrible.  But I'm not ready to give it up, many more good years are still ahead of us

SalesServiceGuy posted:

Xerox floats the idea of buying HP on the same day that the Fuji Xerox/ Xerox tussle seems to be resolved.

Does that sound like a coincidence?

I think Art hit the nail on the head when he said

"In addition they would not have to purchase MFP's from Fuji Film in the future."

I think this is Xerox's way of letting Fuji Xerox know that they do not hold all of the cards.

@SalesServiceGuy yeah that did seem kind of odd, however the Miami Herald did report that HP received a proposal from Xerox late yesterday.  Ty for the comment

Xerox floats the idea of buying HP on the same day that the Fuji Xerox/ Xerox tussle seems to be resolved.

Does that sound like a coincidence?

I think Art hit the nail on the head when he said

"In addition they would not have to purchase MFP's from Fuji Film in the future."

I think this is Xerox's way of letting Fuji Xerox know that they do not hold all of the cards.

Fuji might be the modern version of Konica’s Ikon CPP500 & Danka. What’s old could be new again. But don’t worry, according to all the naysayers, the industry has been dead since copy machines were taught how to print, scan and fax. Yes that right, I said copy machines, not MFP,MFD, XDF or whatever kids are calling them these days. You wanna make $200k per year selling gear, come and move to Wisconsin and we’ll so you the path to what could be...

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