Related News
Xerox to buy ACS for US$5.75b
Source: Agencies |
September 29, 2009, Tuesday
|
Print Edition
Print Edition
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.
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.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
