Xerox and Fujifilm have announced they have entered into an agreement to combine the two firms.

The combined company will provide print technologies and intelligent work solutions, with annual revenues of US$18bn (€14.4bn).

It will have dual headquarters in both the US and Japan.

The combined company will be named 'Fuji Xerox', but maintain its 'Xerox' and 'Fuji Xerox' brands within respective operating regions.

Under the terms of the agreement, Xerox shareholders will receive a US$2.5bn (€2bn) special cash dividend, or approximately US$9.80 (€7.87) per share.

The cash dividend represents more than 30% of Xerox’s unaffected share price as of January 10th, 2018.

Fujifilm will own 50.1% of the combined company and provide operational support and transformational leadership.

It will also trade on the New York Stock Exchange (NYSE) under the ticker XRX.

The transaction has been unanimously approved by the boards of directors of both firms.

The company has a presence in over 180 countries, including Ireland.

Xerox has offices in Dublin, Cork and Belfast - while Fujifilm has a branch office in the capital.

Shigetaka Komori, chairman and chief executive officer of Fujifilm, said: "Fujifilm and Xerox have fostered an exceptional partnership through our existing Fuji Xerox joint venture, and this transaction is a strategic evolution of our alliance.

"The document solutions business represents a significant part of Fujifilm’s portfolio, and the creation of the new Fuji Xerox allows us to more directly establish a leadership position in a fast-changing market."

Jeff Jacobson, chief executive officer of Xerox, added: "The proposed combination has compelling industrial logic and will unlock significant growth and productivity opportunities for the combined company, while delivering substantial value to Xerox shareholders.

"The new Fuji Xerox will be better positioned to compete in today’s environment with truly global scale, increased presence in fast-growing markets, and innovation capabilities to effectively meet our customers’ rapidly-evolving demands."