Xerox Names Ursula Burns Chairman of Post-Separation Document Technology Company
May 20 2016 - 9:00AM
Business Wire
The Board of Directors of Xerox (NYSE:XRX) announced today that
Ursula Burns will serve as chairman of the board of the Document
Technology company following the completion of the separation of
Xerox into two independent, publicly-traded companies. Burns will
continue in her current role as chairman and chief executive
officer of Xerox until the separation.
In January, Xerox announced it would separate into two stand
alone, market-leading companies – a Document Technology company
comprised of its Document Technology and Document Outsourcing
businesses and a Business Process Outsourcing (BPO) company. The
separation is on track to be completed by the end of 2016. The
Document Technology company will be a global leader in document
management and document outsourcing with $11 billion in 2015
revenue.
“Ursula’s deep industry experience and relationships along with
her proven leadership skills will be valuable assets for the
Document Technology company and will help ensure a smooth
transition to a new management team,” said Ann Reese, Xerox’s lead
independent director. “The company will be well positioned to
leverage its global industry leadership, strategic focus and
ability to innovate post-separation and we are very pleased that
Ursula will continue to play a critical role in making that
happen.”
“I am looking forward to my role as chairman of the Document
Technology company and to continuing my deep personal and
professional commitment to its success,” Burns said. “I remain
focused, however, on ensuring Xerox and the post-separation
companies are positioned to build on our strong heritage and
capture new opportunities we have identified to create value for
employees, customers and shareholders.”
“Our search for leadership is well underway and we have an
extremely strong pool of talent across our organization as well as
external candidates to build our management teams,” Burns added.
“We have made significant progress toward creating two strong
companies and I am confident that our decision to separate will
position both businesses for continued success.”
The Document Technology company will lead the market with
superior technology, solutions and innovations that optimize
document management in an increasingly interconnected, digital
world. Its strong profitability and free cash flow generation will
enable significant capital returns and provide for selective
investments in attractive growth areas.
The BPO company will be an industry leader that helps
businesses and governments manage large-scale, transaction
intensive processes with their patients, commuters, travelers,
citizens, and employees. With approximately $7 billion in 2015
revenue – more than 90% of which is annuity based – the company is
focused on attractive growth markets including transportation,
healthcare, commercial and government services.
About Xerox
Xerox is helping change the way the world works. By applying our
expertise in imaging, business process, analytics, automation and
user-centric insights, we engineer the flow of work to provide
greater productivity, efficiency and personalization. Our employees
create meaningful innovations and provide business process
services, printing equipment, software and solutions that make
a real difference for our clients and their customers in 180
countries. On January 29, 2016, Xerox announced that it plans to
separate into two independent, publicly-traded companies: a
business process outsourcing company and a document technology
company. Xerox expects to complete the separation by year-end
2016. Learn more at www.xerox.com.
Forward Looking Statements
This release contains “forward-looking statements” as defined in
the Private Securities Litigation Reform Act of 1995. The words
“anticipate,” “believe,” “estimate,” “expect,” “intend,” “will,”
“should” and similar expressions, as they relate to us, are
intended to identify forward-looking statements. These statements
reflect management’s current beliefs, assumptions and expectations,
including with respect to the proposed separation of the Business
Process Outsourcing ("BPO") business from the Document Technology
and Document Outsourcing business, the expected timetable for
completing the separation, the future financial and operating
performance of each business, the strategic and competitive
advantages of each business, future opportunities for each business
and the expected amount of cost reductions that may be realized in
the cost transformation program, and are subject to a number of
factors that may cause actual results to differ materially. Such
factors include but are not limited to: changes in economic
conditions, political conditions, trade protection measures,
licensing requirements and tax matters in the United States and in
the foreign countries in which we do business; changes in foreign
currency exchange rates; our ability to successfully develop new
products, technologies and service offerings and to protect our
intellectual property rights; the risk that multi-year contracts
with governmental entities could be terminated prior to the end of
the contract term and that civil or criminal penalties and
administrative sanctions could be imposed on us if we fail to
comply with the terms of such contracts and applicable law; the
risk that our bids do not accurately estimate the resources and
costs required to implement and service very complex, multi-year
governmental and commercial contracts, often in advance of the
final determination of the full scope and design of such contracts
or as a result of the scope of such contracts being changed during
the life of such contracts; the risk that subcontractors, software
vendors and utility and network providers will not perform in a
timely, quality manner; service interruptions; actions of
competitors and our ability to promptly and effectively react to
changing technologies and customer expectations; our ability to
obtain adequate pricing for our products and services and to
maintain and improve cost efficiency of operations, including
savings from restructuring actions and the relocation of our
service delivery centers; the risk that individually identifiable
information of customers, clients and employees could be
inadvertently disclosed or disclosed as a result of a breach of our
security systems; the risk in the hiring and retention of qualified
personnel; the risk that unexpected costs will be incurred; our
ability to recover capital investments; the risk that our Services
business could be adversely affected if we are unsuccessful in
managing the start-up of new contracts; the collectability of our
receivables for unbilled services associated with very large,
multi-year contracts; reliance on third parties, including
subcontractors, for manufacturing of products and provision of
services; our ability to expand equipment placements; interest
rates, cost of borrowing and access to credit markets; the risk
that our products may not comply with applicable worldwide
regulatory requirements, particularly environmental regulations and
directives; the outcome of litigation and regulatory proceedings to
which we may be a party; the possibility that the proposed
separation of the BPO business from the Document Technology and
Document Outsourcing business will not be consummated within the
anticipated time period or at all, including as the result of
regulatory, market or other factors; the potential for disruption
to our business in connection with the proposed separation; the
potential that BPO and Document Technology and Document Outsourcing
do not realize all of the expected benefits of the separation; and
other factors that are set forth in the “Risk Factors” section, the
“Legal Proceedings” section, the “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” section
and other sections of our Quarterly Report on Form 10-Q for the
quarter ended March 31, 2016 and our 2015 Annual Report on Form
10-K filed with the Securities and Exchange Commission. Xerox
assumes no obligation to update any forward-looking statements as a
result of new information or future events or developments, except
as required by law.
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version on businesswire.com: http://www.businesswire.com/news/home/20160520005465/en/
Media:XeroxSean Collins,
+1-310-497-9205Sean.Collins2@xerox.comorBill McKee,
+1-585-423-4436Bill.McKee@xerox.com
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