Xerox Corp has agreed to buy Affiliated Computer Services Inc for about $5.75 billion in cash and stock, the companies announced yesterday.
The deal calls for Xerox to pay $63.11 for each ACS shares and will create a $22-billion business that will mesh both printing and copying services with the information technology and outsourcing components of Dallas-based ACS.
"Acquiring ACS helps us expand our business and benefit from stronger revenue and earnings growth," Xerox CEO Ursula Burns said in a statement.
ACS, a $6.5 billion company, had fiscal 2009 revenue growth of 6%and new business signings of $1 billion in annual recurring revenue.
ACS stockholders will receive $18.60 per share in cash plus 4.935 Xerox shares for each ACS share they own.
Xerox, based in Norwalk, Connecticut, will also take on $2 billion of ACS's debt and issue $300 million of convertible preferred stock to ACS's Class B shareholders.
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