Sep 28, 2009
Affiliated Computer Services (ACS) Bought By Xerox
Written under: Business
Xerox Corporation has announced that they will buy Affiliated Computer Services Inc. (ACS) for $6.4 billion. This move shifts the company to computer services to augment the declining sales of its traditional printing equipment.
Xerox said in a statement today that the transaction will help triple sales from services to about $10 billion. The agreed purchase price is about 34 percent more than the ACS stock closing price last September 25.
Xerox has experienced declining sales for three straight quarters, with analysts projecting a fourth, according to Bloomberg. Meanwhile, for ACS, total sales rose 5.9 percent to $6.5 billion in the year ending June 30.
This business buyout stipulates that Xerox will pay $18.60 a share in cash and 4.935 Xerox shares for every Affiliated Computer share, amounting to about $63.11, which is based on closing prices as of Sept. 25. Then, Xerox also will assume about $2 billion in Affiliated Computer’s debt.
xerox, acs, acs xerox, acs inc, affiliated computer