Xerox has executed the first stage of its equipment financing disposal strategy with the sale of its portfolio of lease receivables for Scandinavia.


The disposal, to a "financing partner" later unmasked as Resonia Leasing, is an "important step in our plans to transfer customer equipment financing to third party vendors," said Xerox chairman and chief executive Paul Allaire.


Xerox immediately received 197m ($285m) from the 255m cash sale.


The transaction will increase Xeroxs worldwide cash balance to 2.15bn available to meet financial obligations, added Allaire.


Xerox announced plans to move third-party equipment financing last October as part of its turnaround plans.


The long-term plan is to remove 7.6bn of equipment finance-related debt from Xeroxs balance sheet.


As well as the Nordic sale, Xerox said negotiations continued with "several potential vendors in other countries", including the US.


Resonia is part of Swiss-Swedish engineering group ABB. The long-term agreement includes the transfer of up to 20 administrative staff.


Xerox chief financial officer Barry Romeril described the sale as "a landmark agreement".


Story by Gordon Carson