Fujifilm will own 50.1 percent of Xerox shares, and combine Xerox with Fuji Xerox, their joint venture in which the Japanese company already holds a 75 percent stake.
Separately, Xerox reported a quarterly loss as tumbling demand for office printing took a toll on its results.
The company reported a net loss from continuing operations of $196 million, or 78 cents per share, in the quarter ended Dec. 31, compared with a profit of $185 million, or 70 cents per share, a year earlier.
Total revenue was nearly flat at $2.75 billion.
Billionaire investors Carl Icahn and Darwin Deason, who collectively hold more than 15 percent of Xerox, had jointly pushed the photocopier pioneer to explore strategic options, oust its “old guard,” including its CEO Jeff Jacobson.