Xerox To Buy Affiliated Computer Services For $6.4B

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Xerox said today it will buy Affiliated Computer Services in a cash and stock deal valued at $6.4 billion. With ACS, the copy king will now expand into services such as collecting tolls and installing computer systems in government agencies [VB]. The purchase price is $63.11 a share, a big premium on ACS’ Friday closing price of $47.50 a share.
Xerox will now go to head to head against Dell and HP in print managed services, something that HP expanded into with its $13 billion acquisition of EDS last year and Dell’s acquisition of Perot Systems for $3.9 billion just last week. This deal will see Xerox become a $22 billion in revenue a year company.
ACS, founded more than 20 years ago, has 74,000 employees, while Xerox has 54,000. The deal is expected to close in the first quarter of 2010, pending approvals. The ACS division of Xerox will be led by Lynn Blodgett, its current chief executive.