Xerox buys ACS for $6.4 billion

From CNET News.com: Xerox said Monday it will buy Affiliated Computer Services in a cash and stock deal valued at $6.4 billion.

Xerox is valuing ACS at $63.11 a share, up from ACS' closing price of $47.50. The move transforms Xerox into a services company that can focus on business process management and outsourcing (statement).

The company, which is in a dogfight with Hewlett-Packard for print managed services, is apparently looking for more foot soldiers to cross sell everything from process overhauls to document management programs. After all, HP can use its EDS army to sell print managed services in addition to other items. ACS had $1 billion in recurring revenue during fiscal 2009.

For Ursula Burns, Xerox's CEO, the ACS deal is a defining moment that comes early in her tenure. In a statement, she said:

"By combining Xerox's strengths in document technology with ACS's expertise in managing and automating work processes, we're creating a new class of solution provider. "

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