Xerox, which manufactures products like the Xerox Phaser 8560, has unveiled a takeover deal which takes it into the fields of data management and technology outsourcing.
It is buying fellow U.S. firm Affiliated Computer Services in a cash and shares deal worth $6.4 billion.
"Game-changer"
The world's largest diversified business process outsourcing (BPO) firm, Affiliated Computer Services 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.
Xerox Chief Executive Ursula Burns said the deal was a "game-changer" for Xerox that would help "expand our business and benefit from stronger revenue and earnings growth".
"By combining Xerox's strengths in document technology with Affiliated Computer Services' expertise in managing and automating work processes, we're creating a new class of solution provider," she said. "A game-changer for Xerox, acquiring Affiliated Computer Services 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."
Xerox said it would take on Affiliated Computer Services' debt, worth about $2 billion, as part of the takeover.
Affiliated Computer Services provides information technology services to industries including telecommunications, retail, financial services and education. After the takeover, it will operate as a stand-alone firm.
It is buying fellow U.S. firm Affiliated Computer Services in a cash and shares deal worth $6.4 billion.
"Game-changer"
The world's largest diversified business process outsourcing (BPO) firm, Affiliated Computer Services 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.
Xerox Chief Executive Ursula Burns said the deal was a "game-changer" for Xerox that would help "expand our business and benefit from stronger revenue and earnings growth".
"By combining Xerox's strengths in document technology with Affiliated Computer Services' expertise in managing and automating work processes, we're creating a new class of solution provider," she said. "A game-changer for Xerox, acquiring Affiliated Computer Services 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."
Xerox said it would take on Affiliated Computer Services' debt, worth about $2 billion, as part of the takeover.
Affiliated Computer Services provides information technology services to industries including telecommunications, retail, financial services and education. After the takeover, it will operate as a stand-alone firm.
