Skip to main content

Xerox sued by camera company Fujifilm for $1 Billion over failed acquisition

image credit : Flickr/Open Grid Scheduler

Multi-national technology company Xerox which is very notable for its print and digital document solutions has been embroiled into a legal battle regarding the botched sale of Fujifilm which is notable for its cameras and photography technology which agreed to be acquired for $6.1 Billion by Xerox who then backed out of the deal on the 13th of last month.

Fujifilm is accusing Xerox of succumbing to pressure by activist investors Carl Icahn and Darwin Deason who have combined 15% shareholdings and board seats in the company and opposed the purchase of the digital imaging company after an acquisition deal had been reached.

Fujifilm is now seeking $1 Billion in punitive damages and also a $183 million termination fee owed to it for breaking the legal agreement due to opposition from Billionaire investor Carl Icahn and Darwin Deason who is the largest individual shareholder in the company and became one after selling his IT services company Affiliated Computer Services Inc for $6.4 Billion to Xerox in 2010.

The court case dubbed Fujifilm Holdings v. Xerox, 18-cv-5458 has just been filed in U.S. District Court in Manhanttan, New York and addresses the issues involved in the failed acquisition which was meant to see Xerox merge with Fujifilm's Asia business unit and see Fujifilm hold 50% of Xerox's common stock.

Fujifilm accuses Xerox of "intentional and egregious conduct" in backing off from the acquisition due to the actions of the two investors who are notable for making and pressuring changes in Xerox's board and management even with the 15% they together own which is considered a minority stake.

Xerox's former CEO Jeff Jacobson stepped down last month after long disputes with the activist investors and was replaced by John Visentin who was favoured by both investors, Icahn Enterprises CEO was also named the new Chairman of the company after the board management shakeup which saw several executives depart the company.

Both companies and parties involved will be scheduled to appear in court soon with a settlement to be dished out at a later time, We would now see how this legal dispute will end up in soon time and if the companies would agree to a fair settlement concerning this stalled acquisition.


Most Read Posts

The Chainsmokers Close Debut VC Fund

Popular electronic music duo The Chainsmokers, consisting of band members Alexander Pall and Andrew Taggart, have secured $35 million in capital commitments for their debut venture capital fund named Mantis. Among investors who committed to the new fund include luminary venture capitalists Ron Conway, Keith Rabois, and Mark Cuban as well as private equity billionaire James Coulter. The Chainsmokers share management of the venture capital fund with two day-to-day general partners by the name of Milan Koch, an investor who previously worked at seed-stage fund Base Ventures, and Jeffrey Evans, a record label founder and business acquaintance of The Chainsmokers. Not long ago, Mantis made one of its first investments ever in LoanSnap, a San Francisco-based lending startup which it chipped into a $10 million funding round for. Even before the formation of Mantis, The Chainsmokers had been individual angel investors, backing upstarts including Ember Technologies, a maker of temperature-cont…

Apple Debuts A Cheaper Smartwatch

Apple has announced the Apple Watch SE, a cheaper variant of its popular lineup of premium smartwatches. The new Watch SE, taking the 'SE' name that's usually given to more affordable options of Apple's majorly premium products, packs similar features present in normal Apple smartwatches, including the same accelerometer, gyroscope, and always-on altimeter as the also newly unveiled Apple Watch Series 6, as well as safety capabilities including fall detection, Emergency SOS, and international emergency calling. The Apple Watch SE features Retina display, with thin borders and curved corners that's 30% larger than that of the Apple Watch Series 3. It comes with a dual-core processor that caters to fast performance, for comparison up to two times faster than the Apple Watch Series 3. Other of its features include standard ones like Bluetooth connectivity, Apple Siri, and the presence of a speaker and microphone.The basic (GPS) version of the Apple Watch SE will retai…

Tesla Eyes Nickel From Canada

Electric carmaker Tesla is in talks with Giga Metals, a publicly-traded Canadian miner, about helping to develop a large mine that'll provide low carbon nickel for Tesla batteries, as first reported by news agency Reuters. Tesla is apparently seeking to obtain nickel from sources where it can be mined more efficiently due to environmental pollution concerns, and Giga Metals may be one of such sources, with plans to turn waste from its carbon nickel mining operations into cement type rock by harnessing hydropower and carbon dioxide in the atmosphere. Giga refused to give comment specifically on a possible Tesla deal but clarified that it's in talks with automakers regarding its ability to efficiently mine carbon nickel. “The cost of developing our project, excluding bringing hydroelectric power to the site, will be less than $1 billion.” Giga Metals’s President Martin Vydra said in a statement.The demand for nickel is expected to surge globally in the coming years as individual…

Google Pledges 100% Clean Energy By 2030

Technology giant Google has announced a pledge to transition towards 100% renewable energy for its operations by the year 2030, a pledge which seems to be an extraordinary one for a company operating on a massive scale as Google's. The company says it'll work towards this goal beginning with all-round clean energy for all of its data centers and campuses around the globe. Google points out that costs for wind and solar power declined by 70% and 89% between 2009-2019 as a case that'll make it easier for the company to transition towards 100% renewable energy. It's such that the company has published a 27-page whitepaper as regards its transition plan. 
According to Google, its clean energy jobs will help create 12,000 additional jobs between now and 2025. As part of its efforts, Google will work together with more than 500 cities and local governments globally to help reduce carbon emissions. The video embedded below sheds more light on Google's plan, as narrated by…

Zwift Lands $450 Million In Funding

Zwift, a virtual fitness upstart, has announced that it's raised $450 million in funding led by private equity firm KKR, with participation from the likes of Permira, Zone 5 Ventures, the Amazon Alexa Fund, Highland Europe, and the venture capital fund of popular bicycle maker Specialized. The new investment gives the investors a minority stake in Zwift, which says it'll use it to accelerate the development of its software and hardware operations. Zwift is a virtual fitness startup whose core product is interactive software that can be linked to indoor bikes and treadmills to participate in virtual cycling and running competitions. Zwift's attraction lies in combining fitness with the appeal of gaming, pitching users around the globe in virtual fitness competitions among themselves.With the new funding, Zwift has now raised a total of more than $600 million in funding since its inception. The valuation that came with this round isn't disclosed, but for a hint, the $450…

Richard Branson Eyes $400 Million SPAC

Famed entrepreneur and Virgin Group founder Richard Branson is apparently looking into yet another business foray, this time looking to launch a special purpose acquisition company (SPAC) named VG Acquisition Corp. VG Acquisition Corp has already put out a formal press release indicating its plans of raising $400 million by offering 40 million units of shares for $10 each. The special purpose acquisition company or blank-check company as they're fondly called is seeking to list on the New York Stock Exchange under the ticker "VGAC", with a formal filing already submitted with the U.S. Securities and Exchanges Commission (SEC).Richard Branson, a successful long-time entrepreneur, isn't quite new to SPACs, having merged his aerospace company Virgin Galactic with one last year. Virgin Galactic successfully merged with Social Capital Hedosophia in October of last year and got $450 million to fund its operations in the process. The aerospace company began trading with an …

Beyond Meat Debuts Pre-Packed Meatballs

Plant-based meat products maker Beyond Meat has debuted a new product in the form of pre-packaged plant-based meatballs that'll be made available across grocery stores in the US starting from this week. The new pre-packed Beyond Meatballs will be launching at major US grocery chains including Whole Foods, Kroger, Albertsons, Sprouts, Harris Teeter and the likes. The standard package is 12 meatballs in a pack costing $7. The plant-based pre-seasoned meatballs can be used for a variety of meals such as soups, stews, and the likes. 
To mark the new product launch, Beyond Meat will set up 1-day pop-up shops in Los Angeles and New York City to give persons the option of tasting its product before a planned rollout across grocery stores. “We’re thrilled to introduce Beyond Meatballs as they deliver on consumers’ growing demand for delicious and nutritious plant-based meat options without GMOs or synthetic ingredients,” Stuart Kronauge, Beyond Meat's Chief Marketing Officer, said in a…

Berkshire Makes Bank On Snowflake IPO

Berkshire Hathaway, the investment conglomerate led by famed investor Warren Buffett, has apparently made bank on its recent bet on cloud computing company Snowflake. On the cusp of Snowflake's IPO, Berkshire reached a deal to purchase 2 million shares in the company along with another 4 million shares from an existing stockholder. Snowflake made its public market debut yesterday at an opening price of $120-per-share, implying Berkshire's total 6 million share purchase cost it roughly $720 million. Snowflake raised $3.4 billion on its public market debut, marking the biggest software IPO ever measured by how much the company raised from investors. It's such that investors are apparently very optimistic about Snowflake, with the company's share price yesterday doubling from $120 to about $254 at market close. By that calculation, the value of the 6 million shares held by Berkshire now amount to over $1.5 billion, implying a roughly $800 million profit for Berkshire'…

Nvidia Said To Near $40 Billion Arm Buy

Japanese technology conglomerate SoftBank is on the cusp of a deal to sell Arm, the chip designer it acquired four years ago for $32 billion, for more than $40 billion to US-based chip company Nvidia, according to a report [paywall] by the Wall Street Journal. According to the Journal, SoftBank is set to sell Arm in a cash-and-stock deal that'll value the company in the low $40 billions, marking a sizeable return for SoftBank's $32 billion investment. Nvidia was first reported to in talks to acquire Arm back in July.A $40 billion deal would mark one of the biggest ever seen in the chip industry. It would also mark Nvidia's biggest acquisition, beating by far the company's $7 billion acquisition of Mellanox Technologies, an Israeli computer networking products maker. Nvidia completed its acquisition of Mellanox just in April of this year and is apparently set for yet another big buy. According to the Journal, a formal Arm acquisition deal could be finalized as early as …

Lucid Eyes Energy Storage Business

Lucid Motors, an electric car upstart which recently formally unveiled its first-ever car, is also eyeing business in electric energy storage, according to the company's CEO, Peter Rawlinson. Lucid, backed by more than $1 billion in private funding, seems to be following in the footsteps of Tesla, the famed electric carmaker, and it shouldn't be much surprising given that the company's CEO, Peter Rawlinson, is a Tesla veteran who served as Chief Engineer for its Model S vehicle. Lucid's first vehicle, the Lucid Air, is a luxury electric sedan that also bears similarities to Tesla's vehicles. 
Energy storage represents a sizeable business for capable companies, making it not much a surprise that Lucid is looking into the area. The Newark, California-based company says it aims to have a prototype of a commercial energy storage system installed at this headquarters by the start of next year. The system will store power generated from solar panels on the roof of Lucid&#…