Atos to acquire Xerox's Information Technology Outsourcing business

Atos to acquire Xerox's Information

Technology Outsourcing business

 

 

Complementary portfolios will support new levels

of strategic collaboration between Atos and Xerox

 

 

 

• Atos would acquire Xerox's ITO business to nearly triple its size in the US which would represent its largest operating geography. Atos would become one of Xerox's primary IT services providers
   
• Cash consideration for the transaction is $1.05 billion prior to closing adjustments, with additional consideration of $50 million subject to the condition of certain assets at closing
   
• The transaction enables Xerox to increase its focus on its BPO and document outsourcing businesses within its Services segment

 

Bezons and Norwalk, December 18, 2014 - Atos (EURONEXT PARIS:ATO), an international leader in digital services, and Xerox (NYSE:XRX), a global business services, technology, and document management company, today announced their intention for Atos to purchase Xerox's ITO business for $1.05 billion and become a primary IT services provider for Xerox. Additionally, this transaction will enable new levels of collaboration in client situations and innovative solutions leveraging Atos' world-class ITO capabilities and highlighting Xerox's BPO and document outsourcing expertise.

 

As part of this transaction, Atos will add Xerox's blue-chip ITO clients to its portfolio in order to accompany them on their digital journey. With estimated 2014 revenue of $1.5 billion, Xerox's ITO business employs approximately 9,800 ITO employees in 45 countries, with 4,500 in the U.S. and more than 3,800 in global delivery countries such as India, the Philippines and Mexico. The Xerox ITO leadership team will also join Atos. Xerox's existing ITO clients will gain access to Atos' global IT services capabilities and a broad range of cutting-edge services.

 

Also under the terms of this transaction, Atos will provide IT services to Xerox.

 

Atos and Xerox have established a working relationship spanning several years. For example, Atos has relied on Xerox for managed print, human resource and financial services. Xerox currently uses Atos for ITO work in Europe.

 

"Atos is a company with whom we've had a long relationship in several capacities. Selling the ITO business to Atos gives our clients around the globe an expanded, world-class suite of IT capabilities that complement Xerox's industry leading BPO and document outsourcing solutions." said Ursula Burns, Xerox's chairman and CEO. "This transaction is another step in our ongoing portfolio management strategy and increases our focus on those areas where we can deliver the most value and expertise to our clients".