Norwalk-Based Xerox Announces Split

Xerox and activist investor Carl Icahn announced Friday that the company would separate into two independent publicly-traded companies.

The new company named Business Process Outsourcing would have six directors chosen by Xerox, two of which can be current board of director members and three chosen by Icahn, according to a company statement.

The current committee of its board of directors would begin a search for a new external CEO.

One company that will come out of the split will be named Document Technology and will include Xerox’s legacy business of building copiers and printers, according to the New York Times.

The company has diversified its business with services over the past few years in an effort to stay relevant in the 21st century.

Xerox has more than 140,000 employees worldwide.

“We are pleased to have reached an agreement with Mr. Icahn that ensures that we will have strong leadership and best-in-class governance for the new Business Process Outsourcing company that will be created by our separation plan,” said Ursula Burns, chairman and chief executive officer of Xerox.

“We applaud Ursula Burns and Xerox’s Board of Directors for recognizing the importance of separating Xerox into two publicly-traded companies. We strongly believe that an independent BPO company with fresh, focused leadership and best-in-class corporate governance will greatly enhance shareholder value, and we are proud to be a part of that process.”