Xerox CEO Jason Jacobson has been forced to clean out his desk for the second time this month.
The board has been scrapping with activist investors Carl Icahn and Darwin Deason, who opposed a deal that would see the vendor merge with Fujifilm. They had a go at removing Jacobson once, but thanks to some smart movements the board managed to keep him in place.
In a statement Xerox has now said that Jacobson will depart, with the Fujifilm deal being scrapped.
The statement added: “The Board also considered the potential instability and business disruption during a proxy contest.
“Absent a viable, timely transaction with Fujifilm; the Xerox board believes it is in the best interests of the company and all of its shareholders to terminate the proposed transaction and enter a new settlement agreement with Icahn and Deason.
“Under the agreement, the Xerox board will be reconstituted to determine the best path forward to maximise value for Xerox shareholders.”
As part of the new agreement, five members of the board will depart, along with Jacobson.
Icahn’s nominee John Visentin is expected to be appointed as Xerox CEO.
Icahn said: “We are extremely pleased that Xerox finally terminated the ill-advised scheme to cede control of the company to Fujifilm. With that behind us and new shareholder-focused leadership in place, today marks a new beginning for Xerox. We have often said that the most important person at a company by far is the CEO. We are therefore also pleased that John Visentin, a tried and true veteran in this area, will be taking the helm.”
