Xerox to buy ACS to expand back office services
Xerox Corp ( .N) plans to buy ( .N) for $5.5 billion to move into the outsourcing business, but shares of the printing company plunged on concerns that it was gambling on a major shift in strategy.
The cash-and-stock deal, Xerox’s biggest ever and the first major move by new CEO revenue streams have attracted hardware vendors looking to diversify. Xerox rival Hewlett-Packard Co ( .N) bought EDS last year, and Dell Inc ( .O) plans to buy ( .N)., is the latest in the technology services sector, where reliable
Shares of Xerox fell 14.48 percent to $7.68 as some analysts questioned how quickly the acquisition will bear fruit and others cited concerns about the dilution of Xerox shares.
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