Xerox to buy ACS for $6.4 billion
Imaging giant Xerox Corp. has agreed to buy business services provider Affiliated Computer Services Inc. in a cash and stock transaction worth $6.4 billion.
Under the terms of the agreement, Xerox will pay ACS shareholders $18.60 per share in cash plus 4.935 Xerox shares for each ACS share they own, according to Bloomberg.
The deal will triple Xerox’s revenue from services to roughly $10 billion from $3.5 billion in 2008. Its rival, HP, significantly expanded its services segment last year with its $13.2 billion purchase of EDS.
ACS officials said the acquisition would help the company extend its operations worldwide. “For ACS to expand globally and differentiate our offerings through technology, we need a partner with tremendous brand strength and leading innovation,” said ACS CEO Lynn Blodgett, in a statement.
Xerox has about 54,000 workers, while ACS has 74,000 employees. Xerox said annual cost savings from the deal will increase to as much as $400 million in three years.