NORWALK, Conn. and DALLAS, Sept. 28, 2009 -- Xerox Corporation (NYSE: XRX) and Affiliated Computer Services, Inc. (NYSE: ACS) today announced a definitive agreement for Xerox to acquire ACS in a cash and stock transaction valued at $63.11 per share or $6.4 billion as of the closing price of Xerox stock on Sept. 25. This acquisition will transform Xerox into the leading global enterprise for document and business process management, and will accelerate its growth in an expanding market.The world's largest diversified business process outsourcing (BPO) firm, ACS is a $6.5 billion company with revenue growth of 6 percent and new business signings of $1 billion in annual recurring revenue during its fiscal 2009.
"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 M. Burns, Xerox chief executive officer. "A game-changer for Xerox, acquiring ACS helps us expand our business and benefit from stronger revenue and earnings growth.
"Xerox becomes a $22 billion global company, of which $17 billion is recurring revenue - a significant boost to our profitable annuity stream," she added. "The revenue we generate from services will triple from $3.5 billion in 2008 to an estimated $10 billion next year."
Under the terms of the agreement, go here for rest of press release
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2 comments:
It seems like only yesterday that Xerox was in trouble and was losing money. I knew that they would bounce back and with Ms. Burns as the new CEO, I expect to see dramatic improvement. My only concern for Xerox is that they have not promoted the solid ink technology to the public in the strong fashion that they should, and they are too hesitant to fix the kinks is the solid ink printers before their competitors release a version of their own.
For the past 50 years, Xerox has fortified its leadership in document management, creating new markets through our renowned innovation. Through its proprietary categorization and advanced document imaging software, Xerox technology will help us differentiate our offerings by providing faster, more automated ways to manage our clients' business processes. It is working aggressively toward becoming more focused on information management and business processes. hp 22 ink cartridge
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