Xerox to buy ACS for US$5.75b | Shanghai Daily

The story appears on

Page B7

September 29, 2009

GET this page in PDF

Free for subscribers

View shopping cart

Related News

Home » Business » IT

Xerox to buy ACS for US$5.75b

XEROX Corp has agreed to buy Affiliated Computer Services Inc for about US$5.75 billion in cash and stock, the companies announced yesterday.

The deal calls for Xerox to pay US$63.11 for each ACS share and will create a US$22 billion business that will mesh both printing and copying services with the information technology and outsourcing components of Dallas-based ACS.

"Acquiring ACS helps us expand our business and benefit from stronger revenue and earnings growth," Xerox CEO Ursula Burns said.

ACS, a US$6.5 billion company, had fiscal 2009 revenue growth of 6 percent and new business signings of US$1 billion in annual recurring revenue.

ACS stockholders will receive US$18.60 in cash plus 4.935 Xerox shares for each ACS share they own. Xerox, based in Norwalk, Connecticut, will also take on US$2 billion of ACS's debt and issue US$300 million of convertible preferred stock to ACS's Class B shareholder. With about 91 million ACS shares outstanding, that would value the deal at US$5.75 billion. The companies are valuing the deal at US$6.4 billion.

The acquisition, approved by both companies' boards, is anticipated to add to adjusted earnings results in the first year.

Xerox expects to save US$300 million to US$400 million in the first three years after the deal closes, which is targeted for the first quarter of 2010.


IT



 

Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend