Fujifilm is set to take over Xerox and create a joint venture in order to restructure the firm's business and cut costs.
The planned merger was announced on Wednesday.
Under the terms of the agreement, Fujifilm will own a majority 50.1 percent stake in the venture and combine Xerox with Fuji Xerox, of which Fujifilm already holds a 75 percent stake.
Fuji Xerox will become a full subsidiary of Connecticut-based Xerox, and Xerox will change its name to the "new" Fuji Xerox.
Xerox shareholders will receive a $2.5 billion cash dividend, or approximately $9.80 per share as part of the deal, alongside a 49.9 percent stake in the joint venture at closing.
Fuji Xerox, which produces copiers, printers, and document management solutions, will retain its listing on the NYSE exchange.
Fujifilm hopes the new joint venture will offer "new value to customers" and will be able to strengthen its position in the document solutions space, office document product business, as well as commercial printing.
However, as is often the case with many companies' restructuring efforts, there will be casualties.
The tech giant expects to deliver annual cost savings of $1.7 billion by 2022 by creating a "lean" company -- and this includes the loss of 10,000 jobs worldwide.
The deal has been approved by the Fujifilm and Xerox Boards of Directors.
"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," Jeff Jacobson, Xerox CEO said. "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."
"In addition, the combined company's strong financial profile will enable investments that support continued market leadership, while also providing opportunities for increasing capital returns over time," the executive added.
Fujifilm believes there will be no impact on earnings in FY 2017 and a "mid-to-long term" positive impact on earnings once the transaction has closed.