Xerox explores sale of leasing finance unit: sources

(Reuters) - Xerox Corp is considering the sale of a leasing unit that lends money to customers to rent printers and equipment, to make itself more attractive to potential acquirers following the termination of its $6.1 billion sale to Fujifilm Holdings Corp, people familiar with the matter said on Friday.

Divesting the leasing unit would relieve Xerox of roughly $3.6 billion in debt, one of the sources said. Activist investors Carl Icahn and Darwin Deason, who took control of Xerox earlier this year, are preparing to launch an auction for the company, which has a market capitalization of $6.4 billion and total debt as of the end of March of $5.5 billion. read the rest here

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Oce did that 10 years ago and went bust. They didn't realise how much they relied on the monthly rental income and how inflexible third party leasing companies are when you want to upgrade mid term.

The financing arm is usually the most profitable side of the business.  High interest rate to customers, low rates for them and if the customer goes bust you generally get you equipment back and at the end of the contract you get your gear back.

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