maandag 26 oktober 2009

Xerox takes over Affiliated Computer Services

Xerox, the world’s largest maker of high-speed color printers is going to take over Affiliated Computer Services(ACS), a business process outsourcing company. They agreed a sum of $6.4 billion cash and share offer. That way Xerox has the opportunity to expand on their market, that’s office document management and digital data management. Xerox hopes to combine its expertise in automated document scanning and also routing with ACS technology.

Ursula Burns, chief executive of Xerox who will lead the new group said this deal was a great opportunity as a ‘game changer’(revolution) for her company. "Xerox becomes a 22 billion dollar global company. The revenue we generate from services will triple from 3.5 billion dollar in 2008 to an estimated 10 billion dollar next year.

The ACS shareholders will receive 4935 Xerox shares for each ACS share they have and also 18.60 dollar cash per share.

The companies expect to achieve a saving of 300 to 400 million dollar in the first three years. A negative point is there will be job losses because functions overlap. But yet both companies expect that they go to a long-term expansion. The transaction, which was approved by both boards of directors is also supported by the shareholder approval.

Other news is that Darwin Deason, the founder of ACS 21 years ago and now the single largest individual shareholder in the merger, will be in the company as a long-term investor.

Lynn (male)Blodgett, president and CEO of ACS said he will continue to run his company as an independent organisation, but he is very relieved with the merger because he said that ACS need a partner to expand globally and take their business to another level. Xerox offers that and we both have lots of advantages with this project.

October blog, individual

Teirlynck Mathias

3FV3

Source: The Times and BBC

Geen opmerkingen:

Een reactie posten