September 28, 2009

Xerox to buy Affiliated Computer Services

U.S. company Xerox Corp. said it reached a definitive agreement to purchase outsourcing giant Affiliated Computer Services Inc. for $6.4 billion.

The agreement, which is a stock and cash transaction, values Affiliated at $63.11 per share, Xerox said in a statement.

Affiliated is a computer outsourcing support business based in Texas with 74,000 employees in 100 countries. Xerox, based in Connecticut, is a document-management firm with 54,000 employees worldwide.

Xerox Chief Executive Officer Ursula Burns called the deal a game-changer that creates a $22 billion global company, of which $17 billion is recurring revenue.

The revenue we generate from services will triple from $3.5 billion in 2008 to an estimated $10 billion next year, she said.

Xerox estimated it would save $300 million to $400 million in the first three years in operational synergies.