GE Capital Agrees to Xerox Financing Deal

Xerox Corp. said General Electric Co.’s GE Capital has agreed to be its primary vendor financing partner and provide it with $1 billion in financing.

The agreement comes as part of Stamford, Conn.-based Xerox’s plan, announced in October, to exit its business that finances customers’ equipment, in an effort to trim its total debt of about $16 billion.

The $1-billion financing for Xerox will be secured by the company’s lease receivables, Xerox said, and is subject to closing conditions and due diligence.

Xerox will move almost all of its customer-administration operations to a joint venture to be owned 81% by GE Capital Vendor Financial Services and 19% by Xerox. The two sides will jointly manage the company.

Xerox also said the move to third-party equipment financing would, over time, remove as much as $10 billion in financing-related debt from its balance sheet. About 65% of Xerox’s debt is related to equipment financing.