Xerox Corp., Norwalk, Conn., has agreed to buy Affiliated Computer Services, Dallas, in a cash and stock deal that the companies are valuing at $6.4 billion.
Xerox plans to buy ACS in $6.4 billion deal
ACS offers business-process outsourcing and information-technology services that cuts a wide swath across commercial and government healthcare providers and payers. It is the parent company of Buck Consultants, a workforce and benefits consultancy. ACS reported $686 million in operating income on $6.5 billion in revenue in the fiscal year ended June 30.
ACS President and CEO Lynn Blodgett said in a news release that in order to “expand globally and differentiate our offerings through technology, we need a partner with tremendous brand strength and leading innovation.”
The transaction was approved by the boards of both companies and is expected to close in the first quarter of 2010, after which ACS will operate independently—branded ACS, a Xerox Co.—with Blodgett at the helm. Xerox estimates the acquisition will triple its revenue from services to $10 billion.
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