Xerox Corp. said May 13 that it it is pulling out of its proposed $6.1 billion sale to Fujifilm Holdings Corp. after reaching a deal with activist investors Carl Icahn and Darwin Deason which will allow them to take control of the U.S. company.

Xerox said it had pressed Fujifilm to renegotiate the transaction and that the Japanese company had failed to deliver audited financials of Fuji Xerox by April 15.

Fujifilm's shares rose 1.56% after the news.

Under the deal, Keith Cozza, CEO of Icahn Enterprises LP, will join Xerox's board, and is expected to be appointed Xerox chairman. John Visentin, who was worked as a consultant to Icahn Capital, will replace Jeff Jacobson as Xerox's CEO and become vice chairman.

"We are extremely pleased that Xerox finally terminated the ill-advised scheme to cede control of the company to Fujifilm," Carl Icahn said.

"With that behind us and new shareholder-focused leadership in place, today marks a new beginning for Xerox."