Xerox to Spin-off Services Business

Update 1/29/16: Xerox announced more details today regarding the separation of the company into two business.  The Business Process Outsourcing business which generated $7 billion in 2015 revenue and includes the ACS business acquired in 2010 will be spun out to Xerox shareholders in a tax-free deal.  The remaining $11 billion revenue business which provides document management and document outsourcing is called Document Technology.  

The stated strategic rationale for the deal (since they can't just say "cause Carl made us do it") include enhanced strategic and operational focus, simplification of organizational structure and resources, distinct and clear financial profiles, and compelling equity investment cases.   Xerox also announced a three-year $2.4 billion cost savings initiative.

The spinoff is expected to be completed by year-end.

1/28/16: Under pressure from activist investor Carl Icahn who owns an 8 percent stake in the company, Xerox Corp. will be spinning off its services business to its shareholders by the end of the year.  According to The New York Times, part of the spinoff will include the Affiliated Computer Services business that Xerox acquired for $6.4 billion in 2010.  Reuters is reporting that Icahn will get three board seats on the company holding the services business.