FUJIFILM Holdings Corp. announced today that it has entered into a definitive agreement with Xerox Corp. under which Fujifilm will acquire the 25% stake in Fuji Xerox Co., Ltd., owned by Xerox.

This transaction will bring Fujifilm’s ownership of Fuji Xerox to 100%. The transaction was unanimously approved by the Boards of Directors of Fujifilm and Xerox.

Fuji Xerox will operate as a wholly owned subsidiary of Fujifilm and will continue to supply to Xerox after completion of the transaction.

“This transaction is an ideal next step for Fuji Xerox and Fujifilm that we believe serves our stakeholders well and reflects our commitment to create innovative products that contribute to society,” said Shigetaka Komori, Chairman and Chief Executive Officer of Fujifilm.

“Fuji Xerox has now become a lean and strong company after a series of reforms we started in 2018, and I am confident that with this initiative it will be even stronger.”

Fujifilm will pay USD $2.3Bn (JPY 253.0Bn) in aggregate to Xerox.

Fujifilm Holdings last January announced intentions to acquire U.S. partner Xerox. But the proposal triggered strong opposition from Xerox investors, including top shareholder Carl Icahn. After Xerox terminated the takeover agreement the two had reached, Fujifilm sued Xerox to seek damages.

As part of today's deal, Fujifilm has agreed to withdraw litigation it filed against Xerox on June 18th, 2018 claiming damages caused by the unilateral cancellation of the definitive agreement between the two companies.

Founded in 1962, Fuji Xerox Co., Ltd. is a document solutions company and most recently has been a 75%-25% joint venture between Fujifilm and Xerox.

Fuji Xerox operates in the Asia-Pacific market and has a strong customer base for large corporations and government offices.