Home > business > Xerox to buy ACS to expand back office services

Xerox to buy ACS to expand back office services

Xerox Corp (XRX.N) plans to buy Affiliated Computer Services Inc (ACS.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 Ursula Burns, is the latest in the technology services sector, where reliable revenue streams have attracted hardware vendors looking to diversify. Xerox rival Hewlett-Packard Co (HPQ.N) bought EDS last year, and Dell Inc (DELL.O) plans to buy Perot Systems Corp (PER.N).

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.

Read complete article @ Yahoo Finance

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