Xerox to Acquire ACS for $6.4 Billion
September 28th, 2009 By: Rich Miller
The deals keep coming in the IT services sector. Xerox Corp. has agreed to buy Affiliated Computer Services (ACS) for $6.4 billion, the companies said today. The announcement follows Dell’s $3.9 billion deal to buy Perot Systems and the 2008 mega-merger in which HP acquired EDS for $13.9 billion. All three of the acquired firms were based in the Dallas area.
ACS, which is a leader in business process outsourcing and countsmore than 1,700 federal, state, county and local government agencies among its customers. ACS has 74,000 employees in 500 locations around the globe, and its operations include 13 data centers.
Xerox will pay $18.60 a share in cash and 4.935 Xerox shares for every Affiliated Computer share, amounting to about $63.11, based on closing prices as of Sept. 25. Xerox also will assume about $2 billion in Affiliated Computer’s debt.