Is it good news or bad news for XRX?
Sept. 28 (Bloomberg) -- Xerox Corp. agreed to buy Affiliated Computer Services Inc. for $6.4 billion in its biggest purchase, shifting to computer services as sales of its traditional printing equipment decline.
The transaction will help triple sales from services to about $10 billion, Xerox said today in a statement. The total price of the cash-and-stock deal is about 34 percent more than Dallas-based Affiliated Computer’s closing price Sept. 25.
The acquisition is Chief Executive Officer Ursula Burns’s first since taking over the world’s largest maker of high-speed color printers in July. The transaction helps her expand into a market the company values at about $150 billion and gives her a foothold in managing administrative operations for multiple arms of the U.S. government.
I buy and hold so it's just a matter of time(2me). In any case it will be interesting to see how this plays out.
ColorQube is the solid ink competition to inkjet as toner levels off . The recent sales in MPS coming out of the UK and Canada sound good. The continued improvement in the black toner Nuvera series seem just right in a world where margins on color keep getting tighter.
If X can learn to focus, instead of being lulled by their legacy brand, it should work out fine.