By Lisa Kerner
Charlotte, N.C., Sept. 28 - Xerox Corp. and Affiliated Computer Services, Inc. agreed to combine in a cash-and-stock transaction valued at $63.11 per share, or $6.4 billion, based on the closing price of Xerox stock on Friday.
Affiliated Computer Services shareholders will receive $18.60 in cash plus 4.935 Xerox shares for each share they own.
In addition, Xerox will assume Affiliated Computer Services' debt of $2 billion.
Both companies' boards of directors have approved the deal, which is slated to close in the first quarter of 2010.
Affiliated Computer Services will operate as an independent organization and initially will be branded ACS, a Xerox Company, a Xerox news release said.
Xerox chief executive officer Ursula M. Burns called the deal "a game-changer" for the company.
"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," Burns said in the release.
"The revenue we generate from services will triple from $3.5 billion in 2008 to an estimated $10 billion next year."
JPMorgan and Blackstone Advisory Partners are financial advisers to Xerox. Affiliated Computer Services was advised by Citigroup Global Markets Inc., and the company's special committee was advised by Evercore Partners.
Affiliated Computer Services is a Dallas-based diversified business process outsourcing firm.
Norwalk, Conn.-based Xerox develops, markets and services document equipment and software.
| Acquirer: | Xerox Corp.
|
| Target: | Affiliated Computer Services, Inc.
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| Announcement date: | Sept. 28
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| Price per share: | $18.60 in cash plus 4.935 Xerox shares
|
| Expected closing: | First quarter of 2010
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| Stock price for acquirer: | NYSE: XRX: $9.02 on Sept. 25
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| Stock price for target: | NYSE: ACS: $47.25 on Sept. 25
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