XEROX to Buy Affiliated Computer Services

XEROX to Buy Affiliated Computer Services

Bloomberg : Xerox Corp. agreed to buy Affiliated Computer Services Inc. in a deal valued at about $5.8 billion, making its biggest purchase to shift to technology services as sales of its printing equipment drop.

The acquisition will help triple sales from services to about $10 billion, Xerox said today in a statement.

Chief Executive Officer Ursula Burns, who took over in July, is increasing Xerox’s debt and more than doubling the workforce, sending the stock down and shaving about 10 percent off the purchase price. Her predecessor, Anne Mulcahy, helped Xerox avoid bankruptcy this decade by paring debt, exiting unprofitable businesses and shedding jobs.

“It’s going to take a Herculean effort to integrate these two companies,” said Peter Falvey, a managing director at Revolution Partners LLC in Boston. “There is significant execution and integration risk. It’s a very bold bet.” More details, here.