Xerox buys Affiliated Computer with eye on services market

New York: Xerox, the world's largest maker of high-speed colour printers, said it is buying Affiliated Computer Services for $6.4 billion (Dh23.5 billion), extending its reach in the services market.

Xerox is paying $63.11 in cash and stock for each Affiliated Computer share, 33.6 per cent more than the closing price on September 25 of $47.25, the Norwalk, Connecticut-based company said in a statement.

With the purchase, Xerox will have revenue of $22 billion, of which $17 billion is recurring, chief executive officer Ursula Burns said in the statement.

Burns, who took over as chief executive officer on July 1, had been trying to boost revenue as customers delay purchases during the recession. "By combining Xerox's strengths in document technology with ACS's expertise in managing and automating work processes, we're creating a new class of solution provider," she said in the statement.

Under the agreement, Xerox will pay Dallas-based Affiliated Computer $18.60 a share in cash and 4.935 shares. The deal will add to earning on an adjusted basis from the first year, Xerox said.

Xerox shares have risen 13 per cent in New York Stock Exchange composite trading this year.

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