The first, on the processing of documents, bring together the historical activities of the group whose famous copiers, printers and other scanners.
The second will be dedicated to services in the fields of transport, health, commerce and administration.
The transaction should be finalized by the end of the year.
Shortly after his arrival at the head of the company in 2009, Ms. Burns had attempted a daring turn by launching Xerox in the services sector.
But the reorientation of the company, started in 2010 with the acquisition of ACS, has not had the desired effect and the group restructuring for several years.
The company, based in Connecticut on the east coast of the United States, has also announced a new program savings of 2.4 billion over the next three years.
The title lost last year nearly a third of its value on the New York Stock Exchange. Friday at 8:20 p.m. GMT, however it progressed 5.09% to 9.69 dollars after announcing the split.
The activities of the two new companies, whose names and directions have not yet been decided, “ cover different realities in terms of markets and customers “, has Burns justified in a conference call.
Everything related document processing “ faced a modest structural decline “, with companies seeking such to reduce printing costs when related activities services “ stakeholders are a growing market but rapidly changing “, she noted.
When choosing the decommissioning option, Xerox follows the traces of the computer giant Hewlett Packard which formalized in November its separation into two companies, one dedicated to services and products for companies, the other maintaining the historical activities in printers and computers.
– New eBay –
After a net loss in the third quarter, Xerox announced late October a strategic review of all its activities, without detailing what options were on Table.
Carl Icahn had burst into the Xerox capital a few weeks later, in November, gradually increasing its stake to become the second largest shareholder with 8.13% of the capital behind the Vanguard fund (8, 4%).
Burns assured on CNBC that the arrival of billionaire bubbling did not influence the strategy of Xerox, saying he had “ nothing to do with setting road, reflection, analysis or discussion of the operation “split.
Nevertheless, Mr. Icahn has never hidden want to discuss with the leadership of Xerox ways to improve operational performance and seek other strategic routes.
It will be offered three nine seats in the board of the new company dedicated to services.
The businessman is deemed to interfere in the management of companies in which it invests, with great fanfare of media statements. Among his recent exploits include the split between the online trade group and eBay subsidiary PayPal online payment.
He also makes direct reference to this precedent weapon in a tweet, writing: “ I applaud and respect Urusula Burns to do what she thinks is the will of shareholders, as John Donahoe did for eBay and Paypal “.
This announcement accompanies the distribution of lackluster results.
Xerox has split its net profit more than doubled throughout the year, generating $ 488 million against profits of 1.01 billion in 2014.
Its sales business, down from 8% to 18.05 billion dollars, is shown below expectations.
But adjusted per share excluding exceptional items, earnings were 98 cents, slightly above the 95 cents expected by analysts.
His forecast adjusted earnings per share of between $ 1.10 and $ 1.20 in 2016 also slightly exceeded forecasts.
Following the split, the rating agency Standard and Poor’s downgraded Friday Xerox rating to “ BBB – ” negative watch, considering that the continued decline the results of the treatment division documents could lead to relegate the note group speculative grade.
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