Xerox to acquire ACS for $6.4 Billion

By SiliconIndia   |   Tuesday, 29 September 2009, 02:04 Hrs   |    16 Comments
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Xerox to acquire ACS for $6.4 Billion
New York: Xerox has agreed to buy Affiliated Computer Services (ACS) for $6.4 billion cash-and-stock deal that would expand the copier company into outsourcing and data management.

As per the agreement, Xerox will pay $18.60 and 4.935 Xerox shares for each share of ACS, amounting to about $63.11 per share, based on closing prices on September 25. According to Ursula Burns, Chief Executive of Xerox, revenue from services will triple to an estimated $10 billion next year from $3.5 billion in 2008.

Xerox assumes ACS's debt of $2 billion and issue $300 million of convertible preferred stock to ACS's Class B shareholders. ACS, a provider of business process outsourcing and information technology services, counts more than 1,700 federal, state, county and local government agencies among its customers. ACS has 74,000 employees in 500 locations around the globe, and its operations include 13 data centers.

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