Xerox to acquire Global Imaging Systems for $1.5 billion

02 April 2007

Mumbai: Xerox Corporation, the world''s largest maker of high-speed colour copiers and printers, will acquire office technology products provider Global Imaging Systems Inc. for about $1.5 billion.

Global Imaging, which sells printers and copiers to small and mid-size businesses, will now start selling Xerox document-management products following the acquisition even as Xerox expands its reach in the small and mid-sized business markets.

The deal values Global Imaging at $29 a share, at almost a 50 per cent premium to its March 30 closing price of $19.50.

Stamford, Connecticut-based Xerox said it expects the acquisition to boost 2007 earnings.

The acquisition will bring Xerox almost 200,000 new customers, especially in the $16-billion small to mid-sized business market in the US. The purchase will expand Xerox''s distribution network.
Global Imaging generates about $1 billion in annual sales, the company said. The acquisition is expected to close in May.

Global Imaging may also help revive Xerox''s sagging equipment sales and revive demand for services and supplies, which provide a steadier revenue stream than hardware. Xerox''s reported a minor fall in equipment sales last quarter.