Xerox Forms New Joint Venture with TPG, Raises $450M
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3 days ago
0mins
Should l Buy XRX?
Xerox announced the formation and capitalization of a new joint venture between Xerox and TPG. The joint venture is structured as an intellectual property holding and licensing entity designed to manage, protect, and monetize certain Xerox IP assets. The joint venture has raised $450M in aggregate principal amount of financing led by TPG's credit business, TPG Credit, with participation from other investors, consisting of senior secured term loans and preferred equity. The proceeds of the joint venture financing were distributed to Xerox and are expected to be used for general corporate purposes, including augmenting liquidity. In connection with the joint venture financing, certain subsidiaries of Xerox contributed specific intellectual property assets to the joint venture in exchange for equity interests. As part of this structure, Xerox and the joint venture entered into a long-term shared services and license agreement that preserves the company's full, uninterrupted ability to use the Xerox name, trademark, and other transferred IP across all global operations, ensuring continuity in how Xerox presents itself and serves clients.
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Analyst Views on XRX
Wall Street analysts forecast XRX stock price to rise
1 Analyst Rating
0 Buy
1 Hold
0 Sell
Hold
Current: 1.860
Low
2.50
Averages
2.50
High
2.50
Current: 1.860
Low
2.50
Averages
2.50
High
2.50
About XRX
Xerox Holdings Corporation is a workplace technology company building and integrating software and hardware for enterprises. Its segments include Print and Other and Xerox Financial Services (XFS). Its Print and Other segment includes the sale of document systems, supplies and technical services and managed services. It includes the delivery of managed services that involve a continuum of solutions and services that help its customers optimize their print and communications infrastructure, apply automation and simplification to maximize productivity, and ensure the highest levels of security. It also includes digital and information technology services and software. Its product groupings range from Entry, Mid-Range and High-End. The XFS segment provides global leasing solutions and offers leasing for direct channel customer purchases of Xerox solutions through bundled lease agreements and lease financing to end-user customers who purchase Xerox solutions through its indirect channels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Xerox Declares Quarterly Dividend of $0.025
- Quarterly Dividend Announcement: Xerox declares a quarterly dividend of $0.025 per share, consistent with previous distributions, demonstrating the company's ongoing ability to maintain stable cash flow, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 5.38% reflects Xerox's attractiveness in the current market environment, potentially increasing investor interest in its stock.
- Dividend Payment Schedule: The dividend is payable on April 30, with a record date of March 31 and an ex-dividend date also on March 31, ensuring that existing shareholders receive timely returns, thereby reinforcing shareholder confidence.
- Operating Income Target: Xerox has set a target for over $200 million in operating income improvement by 2026, indicating the company's pursuit of growth through integration and AI-driven reinvention, which could positively impact future financial performance.
See More
Xerox Declares Quarterly Dividend
- Quarterly Dividend Announcement: Xerox's board declared a quarterly dividend of $0.025 per share on common stock, payable on April 30, 2026, to shareholders of record on March 31, 2026, aimed at enhancing shareholder returns and attracting long-term investors.
- Preferred Stock Dividend: Additionally, a quarterly dividend of $20.00 per share on outstanding Series A Convertible Perpetual Preferred Stock was declared, payable on April 1, 2026, to shareholders of record on March 15, 2026, reflecting the company's commitment to preferred shareholders and its stable financial position.
- Business Development Context: For over a century, Xerox has been redefining the workplace experience as a services-led, software-enabled company, focusing on advanced print, digital, and AI-driven technologies to enhance hybrid work environments and strengthen market competitiveness.
- Acquisition Impact: The acquisition of Lexmark in 2025 expanded Xerox's global footprint and service capabilities, enabling the delivery of a broader portfolio of workplace technologies to clients, further solidifying its leadership position in the industry.
See More
Xerox Declares Quarterly Dividend
- Quarterly Dividend Announcement: Xerox's board declared a quarterly dividend of $0.025 per share on common stock, payable on April 30, 2026, to shareholders of record on March 31, 2026, aimed at enhancing shareholder returns and attracting long-term investors.
- Preferred Stock Dividend: Additionally, the company announced a quarterly dividend of $20.00 per share on outstanding Series A Convertible Perpetual Preferred Stock, payable on April 1, 2026, to shareholders of record on March 15, 2026, further solidifying its appeal in the capital markets.
- Business Transformation Strategy: By acquiring Lexmark, Xerox expands its global footprint and strengthens service capabilities, aiming to deliver a broader portfolio of workplace technologies to clients, reflecting the company's ongoing innovation in digital transformation.
- Market Positioning: Xerox is committed to redefining the workplace experience through advanced print, digital, and AI-driven technologies, ensuring it meets the needs of a global, distributed workforce and helps clients thrive in a constantly evolving business landscape.
See More
Xerox Forms Joint Venture with TPG to Enhance Growth
- Joint Venture Formation: Xerox has established a joint venture with global asset management firm TPG, raising $450 million in senior secured loans and preferred equity to enhance liquidity and accelerate the integration of Lexmark, ensuring flexibility in the company's capital structure.
- Intellectual Property Management: The new joint venture will serve as an intellectual property holding and licensing entity, managing and monetizing key Xerox IP assets while ensuring the company retains full use of its trademark and IP globally, preventing any disruption to client operations.
- Financial Outlook: Xerox anticipates over $200 million in operating income growth by 2026, indicating that the joint venture will unlock additional value and support its long-term strategic goals, despite the stock price being 63% lower than its 52-week high.
- Market Performance Analysis: Xerox shares are currently trading at $2.01, which is 7.5% below the 20-day simple moving average, indicating a bearish trend in the short term, with analysts maintaining a Hold rating and a price target of $19.07.
See More
Xerox Forms Joint Venture with TPG to Enhance IP Management
- Joint Venture Formation: Xerox has established a joint venture with leading global asset management firm TPG, focusing on the management and licensing of intellectual property, aimed at protecting and monetizing Xerox's IP assets, which is expected to create new revenue streams for the company.
- $450 Million Financing: The joint venture financing, led by TPG's credit business, raised $450 million, which will be used to enhance liquidity, accelerate the company's reinvention, and optimize its capital structure, ensuring Xerox's financial stability in the future.
- IP Contributions: Certain subsidiaries of Xerox contributed specific intellectual property assets to the joint venture in exchange for equity, ensuring that Xerox retains the ability to use its trademarks and other IP globally, maintaining brand identity and continuity in client service.
- Long-term Strategic Support: Xerox President Louie Pastor stated that this financing strengthens the company's balance sheet, with expectations of over $200 million in operating income growth by 2026, and the joint venture will further unlock the value of Xerox's intellectual property, supporting the execution of the company's long-term growth strategy.
See More
Xerox Holdings Reports Q4 2025 Earnings with Strategic Insights
- Revenue Growth: Xerox reported Q4 revenue of $2.03 billion, a 26% year-over-year increase driven by the acquisitions of Lexmark and ITsavvy, although pro forma revenue declined by 9%, indicating integration challenges and market volatility.
- Cash Flow Performance: Free cash flow reached $184 million, with year-end cash at $565 million against total debt of $4.2 billion, while management cautiously projects $250 million in free cash flow for 2026, reflecting optimism about future financial health.
- Strategic Integration: Significant progress in integrating Lexmark and ITsavvy has led to increased bookings, billings, and backlog, with management highlighting the expected over $200 million increase in adjusted operating income for 2026 due to synergy capture.
- AI-Driven Innovation: The launch of an AI center of excellence and several internal AI offerings have streamlined processes and reduced costs per interaction, which is expected to further enhance operational efficiency and financial performance, showcasing the company's strategic focus on technological innovation.
See More
Xerox Declares Quarterly Dividend of $0.025
- Quarterly Dividend Announcement: Xerox declares a quarterly dividend of $0.025 per share, consistent with previous distributions, demonstrating the company's ongoing ability to maintain stable cash flow, which is likely to attract income-seeking investors.
- Dividend Yield: The forward yield of 5.38% reflects Xerox's attractiveness in the current market environment, potentially increasing investor interest in its stock.
- Dividend Payment Schedule: The dividend is payable on April 30, with a record date of March 31 and an ex-dividend date also on March 31, ensuring that existing shareholders receive timely returns, thereby reinforcing shareholder confidence.
- Operating Income Target: Xerox has set a target for over $200 million in operating income improvement by 2026, indicating the company's pursuit of growth through integration and AI-driven reinvention, which could positively impact future financial performance.
See More
Xerox Declares Quarterly Dividend
- Quarterly Dividend Announcement: Xerox's board declared a quarterly dividend of $0.025 per share on common stock, payable on April 30, 2026, to shareholders of record on March 31, 2026, aimed at enhancing shareholder returns and attracting long-term investors.
- Preferred Stock Dividend: Additionally, a quarterly dividend of $20.00 per share on outstanding Series A Convertible Perpetual Preferred Stock was declared, payable on April 1, 2026, to shareholders of record on March 15, 2026, reflecting the company's commitment to preferred shareholders and its stable financial position.
- Business Development Context: For over a century, Xerox has been redefining the workplace experience as a services-led, software-enabled company, focusing on advanced print, digital, and AI-driven technologies to enhance hybrid work environments and strengthen market competitiveness.
- Acquisition Impact: The acquisition of Lexmark in 2025 expanded Xerox's global footprint and service capabilities, enabling the delivery of a broader portfolio of workplace technologies to clients, further solidifying its leadership position in the industry.
See More
Xerox Declares Quarterly Dividend
- Quarterly Dividend Announcement: Xerox's board declared a quarterly dividend of $0.025 per share on common stock, payable on April 30, 2026, to shareholders of record on March 31, 2026, aimed at enhancing shareholder returns and attracting long-term investors.
- Preferred Stock Dividend: Additionally, the company announced a quarterly dividend of $20.00 per share on outstanding Series A Convertible Perpetual Preferred Stock, payable on April 1, 2026, to shareholders of record on March 15, 2026, further solidifying its appeal in the capital markets.
- Business Transformation Strategy: By acquiring Lexmark, Xerox expands its global footprint and strengthens service capabilities, aiming to deliver a broader portfolio of workplace technologies to clients, reflecting the company's ongoing innovation in digital transformation.
- Market Positioning: Xerox is committed to redefining the workplace experience through advanced print, digital, and AI-driven technologies, ensuring it meets the needs of a global, distributed workforce and helps clients thrive in a constantly evolving business landscape.
See More
Xerox Forms Joint Venture with TPG to Enhance Growth
- Joint Venture Formation: Xerox has established a joint venture with global asset management firm TPG, raising $450 million in senior secured loans and preferred equity to enhance liquidity and accelerate the integration of Lexmark, ensuring flexibility in the company's capital structure.
- Intellectual Property Management: The new joint venture will serve as an intellectual property holding and licensing entity, managing and monetizing key Xerox IP assets while ensuring the company retains full use of its trademark and IP globally, preventing any disruption to client operations.
- Financial Outlook: Xerox anticipates over $200 million in operating income growth by 2026, indicating that the joint venture will unlock additional value and support its long-term strategic goals, despite the stock price being 63% lower than its 52-week high.
- Market Performance Analysis: Xerox shares are currently trading at $2.01, which is 7.5% below the 20-day simple moving average, indicating a bearish trend in the short term, with analysts maintaining a Hold rating and a price target of $19.07.
See More
Xerox Forms Joint Venture with TPG to Enhance IP Management
- Joint Venture Formation: Xerox has established a joint venture with leading global asset management firm TPG, focusing on the management and licensing of intellectual property, aimed at protecting and monetizing Xerox's IP assets, which is expected to create new revenue streams for the company.
- $450 Million Financing: The joint venture financing, led by TPG's credit business, raised $450 million, which will be used to enhance liquidity, accelerate the company's reinvention, and optimize its capital structure, ensuring Xerox's financial stability in the future.
- IP Contributions: Certain subsidiaries of Xerox contributed specific intellectual property assets to the joint venture in exchange for equity, ensuring that Xerox retains the ability to use its trademarks and other IP globally, maintaining brand identity and continuity in client service.
- Long-term Strategic Support: Xerox President Louie Pastor stated that this financing strengthens the company's balance sheet, with expectations of over $200 million in operating income growth by 2026, and the joint venture will further unlock the value of Xerox's intellectual property, supporting the execution of the company's long-term growth strategy.
See More
Xerox Holdings Reports Q4 2025 Earnings with Strategic Insights
- Revenue Growth: Xerox reported Q4 revenue of $2.03 billion, a 26% year-over-year increase driven by the acquisitions of Lexmark and ITsavvy, although pro forma revenue declined by 9%, indicating integration challenges and market volatility.
- Cash Flow Performance: Free cash flow reached $184 million, with year-end cash at $565 million against total debt of $4.2 billion, while management cautiously projects $250 million in free cash flow for 2026, reflecting optimism about future financial health.
- Strategic Integration: Significant progress in integrating Lexmark and ITsavvy has led to increased bookings, billings, and backlog, with management highlighting the expected over $200 million increase in adjusted operating income for 2026 due to synergy capture.
- AI-Driven Innovation: The launch of an AI center of excellence and several internal AI offerings have streamlined processes and reduced costs per interaction, which is expected to further enhance operational efficiency and financial performance, showcasing the company's strategic focus on technological innovation.
See More
