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Fujifilm Aiming to Spin Off Fujifilm Business Innovation

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Fujifilm Holding of Japan announced today that it’s begun assessing a partial spin-off of its Fujifilm Business Innovation business, with Fujifilm retaining a minority interest.  The company also reported today that Business Innovation has a loss of ¥1.4 billion ($8.85 million) for its most recent quarter.

One-Third of Fujifilm Revenue

Fujfiilm also said that the Business Innovation business is one of its key pillars of growth, accounting for approximately 35 percent of the company’s revenue. As the Business Innovation business accelerates its shift toward a solutions-driven model and enters a new phase of growth, Fujifilm says it recognizes Business Innovation’s need for a more agile operating framework to effectively execute strategic initiatives and drive expansion. Accordingly, Fujifilm has begun an assessment of a partial spin-off of the Business Innovation business.

Fujifilm Business Innovation traces its roots to 1962 when Fuji Photo Film and Rank Xerox established Fuji Xerox as a joint venture. After Fujifilm acquired Xerox’s remaining stake in 2019, the company was officially renamed Fujifilm Business Innovation in 2021, shifting its focus toward global workflow solutions, digital transformation, and IT services. It supplies office and light production hardware to Xerox, Katun, Sharp Corporation, and others.

Minority Stake

To support the growth of the Business Innovation business following the spin-off, if implemented as one of the strategic options, Fujifilm is considering retaining a minority stake in Business Innovation of less than 20 percent, enabling the business to continue utilizing the Fujifilm brand, including its trade name, and generating synergies with companies in the Fujifilm Group.  

Fujifilm will proceed with its assessment, giving consideration to executing the spin-off within the next two to three years. Items to be assessed will include the selection of the listing market for the shares of Business Innovation and the possibility of satisfying qualifications for tax-free treatment. The execution of the spin-off is subject to approvals, certifications and/or permissions by the relevant stock exchange, other relevant authorities, as well as shareholders and other stakeholders.

The company said shares of Business Innovation would be listed on the Tokyo Stock Exchange. More details will be disclosed in the future.