Xerox completes acquisition of Global Imaging, expands distribution capacity by 50%

By Lisa Kerner

Charlotte, N.C., May 11 - Xerox Corp. completed the $1.5 billion acquisition of Global Imaging Systems, Inc. On Thursday, Xerox acquired all of the remaining outstanding shares of Global Imaging for $29 per share in cash.

Global Imaging's core companies are expected to begin providing Xerox systems and supplies to their customers over the next 90 days. The deal expands Xerox's distribution capacity in the small- to medium-sized business market by 50%.

Global Imaging now operates as a wholly owned subsidiary of Xerox with Global's chairman and chief executive officer, Tom Johnson, and Michael Shea, president and chief operating officer, continuing to lead the Tampa, Fla.-based company.

RG Acquisition I Corp., a wholly owned subsidiary of Xerox, began a $29.00-per-share cash tender offer for Global Imaging on April 4. The offer expired on May 8, with about 45.6 million shares tendered, or 90.4% of the shares outstanding.

"Global Imaging has created an incredibly successful business that is respected not only in the industry but also by its customers and people," Xerox North America president Jim Firestone said in a company news release.

"As part of Xerox, Global's mandate is to continue doing what it does so well: applying its entrepreneurial spirit to developing deep relationships with customers and delivering excellent local sales, service and support.

Standard & Poor's raised Xerox's corporate credit rating to investment grade, to BBB- from BB+, following similar investment-grade actions from rating services Moody's Investors Service and Fitch Ratings.

Stamford, Conn.-based Xerox develops, markets and services document equipment and software.

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