Atos to enhance its global leadership in digital services

 

 

Atos to enhance its global leadership in digital services

  

Atos to acquire Xerox IT outsourcing operations

Atos and Xerox to enter in a worldwide strategic collaboration

 

 

• Atos would acquire Xerox's IT Outsourcing (ITO) business to almost triple its size in the US which would represent its largest operating geography
   
• Atos would become one of Xerox's primary IT services providers and Xerox's Business Process Outsourcing (BPO) and Document Outsourcing clients would gain access to Atos' global IT Services capabilities
   
• Global cash consideration for the transaction represents €840 million plus additional consideration of €40 million subject to the occurrence of certain events prior to closing
   
• Atos and Xerox to enter in a worldwide strategic collaboration to team up in joint innovation projects and to jointly go to market in order to maximize opportunities in IT services for Atos and in BPO for Xerox in Europe and North America
   
• Substantial benefits expected from the transaction, in terms of cross selling opportunities, growth acceleration through the collaboration with Xerox, and cost efficiencies across the combined organization
   
• Transaction is expected to close in the second quarter of 2015 and to be accretive on Atos' EPS by 10% as early as the first year

 

 

Bezons, December 18, 2014 - Atos, an international leader in digital services, announces its intention to enter a worldwide strategic collaboration in IT Services and BPO with Xerox, a global business services, technology, and document management company.

 

Atos would acquire Xerox's Information Technology Outsourcing (ITO) business for a cash consideration US$ 950 million (translating into €760 million) plus $100 million (i.e. €80 million) representing the estimated present value of future tax benefits to Atos, and an additional consideration of $50 million (i.e. €40 million) subject to the condition of certain assets at closing. The consideration is on a cash free / debt free basis.

 

With estimated 2014 revenue of $1.5 billion and 8% operating margin rate, Xerox ITO business employs approximately 9,800 employees in 45 countries of which 4,500 are located in the US and more than 3,800 are in global delivery countries such as India, the Philippines, and Mexico. The Xerox ITO business is led by a strong and experienced management team which would reinforce Atos' talent pool in the US.