Xerox Announces Formation of CareAR Software Business

Rhea-AI Summary

Xerox Holdings Corporation (NYSE: XRX) has announced the formation of CareAR, consolidating three key services under a $700 million post-money valuation. The newly formed CareAR received a $10 million investment from ServiceNow, enhancing its service experience management platform. CareAR will integrate augmented reality with digital workflows to improve service delivery, reduce operational costs, and support sustainability goals. It aims to address workforce challenges and enhance customer outcomes, led by Steve Bandrowczak and Sam Waicberg.

Positive

• Received a $10 million investment from ServiceNow.
• Valued at $700 million post-money valuation.
• Combines CareAR, DocuShare, and XMPie under one platform, enhancing service delivery.
• Utilizes augmented reality to improve operational efficiencies and reduce costs.
• Addresses workforce talent issues due to an aging service workforce.

Negative

• None.

New CareAR Service Experience Management Platform valued at $700 million post-money valuation and attracts $10 million investment from ServiceNow

NORWALK, Conn.--(BUSINESS WIRE)-- Xerox Holdings Corporation (NYSE: XRX) announced the formation of CareAR, A Xerox Company, which consolidates CareAR, Inc., DocuShare^® and XMPie under a single holding company named CareAR Holdings. CareAR received a $700 million post-money valuation following a $10 million equity investment from ServiceNow, the leading digital workflow company that makes work, work better for people.

A technical service representative leverages augmented reality technology from CareAR, A Xerox Company (Photo: Business Wire)

CareAR will be led by Xerox President and Chief Operations Officer Steve Bandrowczak, who will expand his current role to also serve as CareAR’s Chairman, and Sam Waicberg, the original founder of Care, Inc., who will serve as CareAR’s President.

Now combining DocuShare's content management system, XMPie’s cross-media platform, and Xerox’s PARC Alto AI artificial intelligence engine, the expanded CareAR service experience platform will support service workforces with the visual tools and access to data that are needed to consistently deliver high quality service experiences for service employees and end-customers, all while lowering the operating costs and greenhouse gas emissions of service providers. The backbone of the new CareAR^® platform is the augmented reality technology Xerox gained through the acquisition of CareAR, Inc., announced earlier this year, which integrates with ServiceNow^® Field Service Management and allows service technicians to tap into the knowledge of more experienced technicians through live, AR assisted instruction.

CareAR’s service experience management platform is designed to be industry agnostic and integrates seamlessly with digital workflow leader ServiceNow’s platform, ensuring an end-to-end approach to work orders, cases and incidents, and delivering high quality customer outcomes and service experiences for enterprises across multiple industries. The company’s augmented reality technology is disrupting the service delivery ecosystem and addressing key sustainability and workforce challenges, including:

• Empowering support workforces with the visual tools and access to data that are needed to consistently deliver high quality service experiences for service employees and end-customers, all while lowering the operating costs and greenhouse gas emissions of service providers.

• Helping solve workforce talent issues – primarily associated with a retiring workforce. As the current workforce ages into retirement, service organizations will no longer be able to rely on the apprenticeship-based training that has sustained service businesses for decades. CareAR will help leverage and optimize experienced employees’ time and allow inexperienced workers to draw on a repository of knowledge curated by CareAR’s predictive AI capabilities.

• Supporting service employers' sustainability and social responsibility goals. CareAR facilitates remote preventative and maintenance-based actions, thereby reducing initial and follow-on technician dispatches. Lower dispatches result in fewer truck rolls, thereby lowering carbon emissions for service organizations. And better-informed employees make for a safer workplace.

"Xerox has positioned CareAR to deliver capabilities that service-intensive industries need, with real-time instruction, visual tools and access to data at the tip of any user’s fingertips, all driven by predictive artificial intelligence,” said Xerox Vice Chairman and CEO John Visentin. “By creating a platform that is intuitive to a digitally native workforce, and with investment from ServiceNow, we believe CareAR will define and grow the Service Experience Management category, disrupting industries at a time when it’s needed most.”

“Our customers have never more urgently needed workflows that deliver greater operational efficiencies, better customer and environmental outcomes, and improved safety,” said John Ball, senior vice president of Customer Workflows at ServiceNow. “Our investment reflects our belief that CareAR has the potential to deliver world-class, enterprise-grade augmented reality. Customers using CareAR’s augmented reality to route work through ServiceNow’s leading workflow platform can better solve problems remotely, speeding resolution times and reducing the need for expensive on-site visits, which also reduces carbon emissions dramatically. Together, we’re delivering powerful enterprise service experiences for the new world of work.”

Xerox was advised by Mizuho Securities USA and Willkie Farr & Gallagher LLP in connection with the transaction.

Investor Webcast

Xerox’s senior management will host a webcast to review this announcement on Thursday, Sept. 2, 2021 at 8:30 a.m. ET. To view the webcast, visit the Presentations & Webcasts section of Xerox’s Investor Relations homepage, at https://investors.xerox.com/investors/presentations-webcasts, https://edge.media-server.com/mmc/p/he4sv8aj. The webcast will include a slide presentation that will be available on Xerox's Investor Relations website by 8:15 a.m. ET today.

About Xerox Holdings Corporation

For more than 100 years, Xerox has continually redefined the workplace experience. Harnessing our leadership position in office and production print technology, we've expanded into software and services to sustainably power today's workforce. From the office to industrial environments, our differentiated business solutions and financial services are designed to make every day work better for clients — no matter where that work is being done. Today, Xerox scientists and engineers are continuing our legacy of innovation with disruptive technologies in digital transformation, augmented reality, robotic process automation, additive manufacturing, Industrial Internet of Things and cleantech. Learn more at xerox.com.

About CareAR

CareAR, A Xerox Company, is the Service Experience Management (SXM) leader. We make expertise accessible instantly for users through remote, live visual augmented reality (AR) and AI interactions, instructions and insights as part of a seamless digital workflow experience. CareAR sets the benchmark for the SXM category by bridging skills gaps, accelerating knowledge transfers, providing greater operational efficiencies, and enhancing customer outcomes and safety. Learn more at CareAR.com.

About ServiceNow

ServiceNow is making the world of work, work better for people. Our cloud-based platform and solutions deliver digital workflows that create great experiences and unlock productivity for employees and the enterprise. For more information, visit: www.servicenow.com.

Forward-Looking Statements

This release, and other written or oral statements made from time to time by management contain “forward-looking statements” as defined in the Private Securities Litigation Reform Act of 1995. The words “anticipate”, “believe”, “estimate”, “expect”, “intend”, “will”, “should”, “targeting”, “projecting”, “driving” and similar expressions, as they relate to us, our performance and/or our technology, are intended to identify forward-looking statements. These statements reflect management’s current beliefs, assumptions and expectations and are subject to a number of factors that may cause actual results to differ materially. Such factors include but are not limited to (i) whether CareAR’s service experience management platform will achieve expectations regarding customer adoption, integration with ServiceNow’s platform, and cost and carbon emission reduction, (ii) the financial performance of CareAR, including projected revenue for fiscal years 2021 and 2022, and (iii) the other the factors that are set forth in the "Risk Factors" section, the "Legal Proceedings" section, the "Management's Discussion and Analysis of Financial Condition and Results of Operations" section and other sections of Xerox Holdings Corporation’s and Xerox Corporation's combined 2020 Annual Report on Form 10-K, as well as in Xerox Holdings Corporation's and Xerox Corporation's Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC. These forward-looking statements speak only as of the date of this release or as of the date to which they refer, and Xerox assumes no obligation to update any forward-looking statements as a result of new information or future events or developments, except as required by law.

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Media Contact: Callie Ferrari, APR, Xerox, +1-203-849-5254, Callie.Ferrari@xerox.com
Investor Contact: David Beckel, Xerox, +1-203-849-2318, David.Beckel@xerox.com

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Xerox^® and DocuShare^® are trademarks of Xerox in the United States and/or other countries.

CareAR^® is a trademark of CareAR Holdings LLC in the United States and/or other countries.

ServiceNow^®, the ServiceNow logo, Now, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc., in the United States and/or other countries.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210902005267/en/

Media Contact: Callie Ferrari, APR, Xerox, +1-203-849-5254, Callie.Ferrari@xerox.com

Investor Contact: David Beckel, Xerox, +1-203-849-2318, David.Beckel@xerox.com

Source: Xerox Holdings Corporation / CareAR, A Xerox Company

FAQ

What is CareAR's post-money valuation?

CareAR has a post-money valuation of $700 million.

How much investment did CareAR receive from ServiceNow?

CareAR received a $10 million investment from ServiceNow.

Who leads the CareAR platform within Xerox?

Steve Bandrowczak will serve as CareAR's Chairman, while Sam Waicberg will be its President.

What technologies does CareAR integrate with?

CareAR integrates augmented reality with ServiceNow's digital workflow platform.

What is the primary goal of CareAR's service experience management platform?

The primary goal is to enhance service delivery while reducing operational costs and supporting sustainability.