Xerox to buy Affiliated Computer for $5.75B

[September 28, 2009]  NEW YORK (AP) -- Xerox says it will buy Affiliated Computer Services in a cash-and-stock deal valued at $5.75 billion.

The deal is worth $63.11 per share 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.

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, Conn., will also take on $2 billion of ACS's debt and issue $300 million of convertible preferred stock to ACS's Class B shareholder.

Xerox expects to save $300 million to $400 million in the first three years after the deal closes.

Both companies' boards have approved the acquisition, which is targeted to close in the first quarter of 2010.

[Associated Press]

Copyright 2009 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.