Vendor Wire
Xerox Spends US$6.4 Billion for ACS

Written by PrintAction Staff

Xerox Corp. signed an agreement to acquire Affiliated Computer Services (ACS) in a cash and stock transaction valued at $63.11 per share or US$6.4 billion, as of the closing price of Xerox stock on September 25.

Headquartered in Dallas, ACS is described as the world's largest business process outsourcing (BPO) firm. It employs more than 74,000 people, working with multinational corporations and government agencies in over 100 countries from 500 locations. The transaction, which has been approved by the Xerox and ACS boards, is expected to close in the first quarter of 2010.

 "By combining Xerox's strengths in document technology with ACS's expertise in managing and automating work processes, we're creating a new class of solution provider," said Ursula Burns, Xerox CEO, who described the deal as a “game-changer” for the company. "Xerox becomes a US$22 billion global company, of which US$17 billion is recurring revenue – a significant boost to our profitable annuity stream. The revenue we generate from services will triple from US$3.5 billion in 2008 to an estimated US$10 billion next year."  

In addition to the exchange of shares, Xerox will assume ACS's debt of US$2 billion and issue US$300 million of convertible preferred stock to ACS's Class B shareholders. On an adjusted earnings basis, Xerox expects the transaction to be accretive in the first year.

Tags: Xerox Affiliated Computer Services

Comments

Powered by !JoomlaComment 4.0alpha3

Vendor Wire

Tuesday, February 7

Ferrostaal Appoints CPE as Dealer

Ferrostaal Equipment Solutions North America has named Canadian Printing Equipment Ltd. to serve as its ...

Thursday, February 2

manroland Names Langley as Sheetfed Investor

Werner Schneider, the administrator overseeing manroland AG’s insolvency proceedings, released a statement this morning that ...

Tuesday, January 31

Catalyst Files for Bankruptcy Protection

Catalyst Paper Corporation of Richmond, BC, today filed for bankruptcy protection under the Companies’ Creditors ...

Tuesday, January 31

drupa: Muller Martini Preview

Finishing equipment manufacturer Muller Martini provided a sneak peek at what it will be promoting ...

Tuesday, January 31

drupa: Goss Preview

Goss has given a sneak peek on what it will be showing at the quadrennial ...

Tuesday, January 31

xpedx to close Stores Division

xpedx made a surprise announcement on its Facebook page stating it will be closing its ...

Tuesday, January 24

Mutoh Celebrates 60 Years

Mutoh, a seller of wide-format printers, is celebrating its 60th business in business. The Tokyo-based ...

Tuesday, January 17

Ferrostaal Grows Team for New Partnerships

Houston-based Ferrostaal Equipment Solutions North America has announced the hiring of sales, technical support and ...

Monday, January 16

manroland Decision "Imminent"

A press release from Schneider Geiwitz & Partner, who is handling the insolvency proceedings of ...

Monday, January 16

EFI Acquires Cretaprint S.L.

In a move to expand its inkjet focus with ceramic-tile printing, EFI has acquired privately ...

Tuesday, January 10

Kodak Announces New Business Structure

Eastman Kodak, in an attempt to accelerate its "digital transformation" has announced it will be ...

Tuesday, January 10

Adobe Releases Lightroom 4 Beta

Adobe Systems released a public beta of its upcoming Lightroom 4 software. Lightroom is software ...

© Copyright 2012 PrintAction Online Web Design & Development by Zebra IT Solutions.