On Wednesday, FUJIFILM Holdings Corporation and Xerox Corporation (NYSE: XRX) announced that Xerox will merge with Fuji Xerox in joint venture.

Fuji Xerox joint venture was a joint venture partnership between the two companies. Established in 1962, the joint venture sells photocopying products and services in the Asia-Pacific region. Currently, Fujifilm owns 75% of the joint venture.

After the merge, the combined company will keep the name Fuji Xerox, and will become a subsidiary of Fujifilm. The new company will be led by Jeff Jacobson, the CEO of Xerox, and Shigetaka Komori, the CEO of Fujifilm, will be the chairman. Besides, the combined company will have dual headquarters in Norwalk, Connecticut, and in Tokyo. In most nations, the Xerox brand will be used, and in Asia and Australia, the Fuji Xerox brand will be used.

“In many ways, Xerox and Fuji Xerox perfectly complement each other geographically and in our competitive strengths,” Jeff said in conference call on Wednesday.

“The transaction creates a combined company that will be dramatically stronger and more competitive than either company is on a stand-alone basis,” he added.

The deal comes when Xerox Corporation has been under pressure to find new sources of growth, and Fujifilm focus more on document solutions services to streamline its copier business.

Shares of Fujifilm dropped after the announcement, while shares of Xerox was up 4% to $33.99 per share in morning trading on Wednesday.