Xerox Corp said it will buy Affiliated Computer Services Inc (ACS) in a $6.4 billion cash-and-stock deal that expands the copier company into outsourcing and data management.
The deal, priced at a 33.6 per cent premium to ACS’s Friday closing price, is the latest in the active technology services sector. A week ago, Dell Inc said it would buy Perot Systems Corp. Hewlett-Packard may sell part of its outsourcing business.
Xerox will pay 4.935 Xerox shares and $18.60 in cash for each share of ACS, totaling $63.11 per share based on Friday’s closing price, the companies said in a statement.
Ursula Burns, chief executive of Xerox, said revenue from services will triple to an estimated $10 billion next year from $3.5 billion in 2008. Xerox assume ACS’s debt of $2 billion and issue $300 million of convertible preferred stock to ACS’s Class B shareholder.