<p>The deal, priced at a 33.6 percent premium to ACS’s Friday closing price, is the latest in the active technology services sector. Xerox will pay 4.935 Xerox shares and $18.60 in cash for each share of ACS, totaling $63.11 per share based on Friday’s closing price, the companies said. <br /><br />Xerox Chief Executive Ursula Burns said that the revenue from services will triple to an estimated $10 billion next year from $3.5 billion in 2008.<br /><br />Xerox assume ACS’s debt of $2 billion and issue $300 million of convertible preferred stock to ACS’s Class B shareholder. On an adjusted earnings basis, the deal is expected to add to Xerox’s earnings in the first year.<br /><br />Xerox said it would become a $22 billion global company after the deal, of which $17 billion is recurring revenue. It expects annualized cost savings of $300 million to $400 million in the first three years after closing.<br /><br />The deal is expected to close in the first quarter of 2010.</p>
<p>The deal, priced at a 33.6 percent premium to ACS’s Friday closing price, is the latest in the active technology services sector. Xerox will pay 4.935 Xerox shares and $18.60 in cash for each share of ACS, totaling $63.11 per share based on Friday’s closing price, the companies said. <br /><br />Xerox Chief Executive Ursula Burns said that the revenue from services will triple to an estimated $10 billion next year from $3.5 billion in 2008.<br /><br />Xerox assume ACS’s debt of $2 billion and issue $300 million of convertible preferred stock to ACS’s Class B shareholder. On an adjusted earnings basis, the deal is expected to add to Xerox’s earnings in the first year.<br /><br />Xerox said it would become a $22 billion global company after the deal, of which $17 billion is recurring revenue. It expects annualized cost savings of $300 million to $400 million in the first three years after closing.<br /><br />The deal is expected to close in the first quarter of 2010.</p>