Xerox signed a definitive agreement to acquire Global Imaging Systems for $1.46 billion.
April 2, 2007 (Press Release) --
Xerox signed a definitive agreement to acquire Global Imaging Systems for $1.46 billion, the largest of three acquisitions made in the last year.
Xerox, Stamford, Conn., will pay $29 a share for Global Imaging, a Tampa, Fla., company that sells office-imaging products and services from various suppliers, none of which today includes Xerox. The price is a 49% premium to Global's closing price of $19.50 Friday.
Xerox sees the Global acquisition adding to full-year earnings. Through the acquisition, Xerox said it would benefit not only from increased equipment sales but also from the strong annuity stream that comes from the service and supplies to support these products.
Since its founding in June 1994, Global has acquired more than 80 businesses and has operations in 32 states and the District of Columbia. The company went public in 1998. Global has nearly 200,000 customers across the U.S. that generate for the company more than $1 billion in annual sales.
Global Imaging will operate as a unit of Xerox when the acquisition closes. Chairman and Chief Executive Tom Johnson and President and Chief Operating Officer Michael Shea will continue to lead Global Imaging, and will report to Jim Firestone, president of Xerox North America.
Xerox also said Global Imaging's 4,500 employees will continue to work for the company.
This is Xerox's third acquisition in the last 52 weeks. The company acquired Amici LLC for $175 million in July, and XMPie for $54 million in November. Amici is a provider of electronic-discovery services that support litigation and regulatory compliance, and XMPie makes software for multimedia marketing campaigns.
During an October conference call, Xerox Chief Executive Anne Mulcahy said it would use its $1.5 billion in cash to ink more acquisitions, and would focus on software and those that boost its services business.
Author: Jonathan Vuocolo
Source: http://www.marketwatch.com/
Xerox, Stamford, Conn., will pay $29 a share for Global Imaging, a Tampa, Fla., company that sells office-imaging products and services from various suppliers, none of which today includes Xerox. The price is a 49% premium to Global's closing price of $19.50 Friday.
Xerox sees the Global acquisition adding to full-year earnings. Through the acquisition, Xerox said it would benefit not only from increased equipment sales but also from the strong annuity stream that comes from the service and supplies to support these products.
Since its founding in June 1994, Global has acquired more than 80 businesses and has operations in 32 states and the District of Columbia. The company went public in 1998. Global has nearly 200,000 customers across the U.S. that generate for the company more than $1 billion in annual sales.
Global Imaging will operate as a unit of Xerox when the acquisition closes. Chairman and Chief Executive Tom Johnson and President and Chief Operating Officer Michael Shea will continue to lead Global Imaging, and will report to Jim Firestone, president of Xerox North America.
Xerox also said Global Imaging's 4,500 employees will continue to work for the company.
This is Xerox's third acquisition in the last 52 weeks. The company acquired Amici LLC for $175 million in July, and XMPie for $54 million in November. Amici is a provider of electronic-discovery services that support litigation and regulatory compliance, and XMPie makes software for multimedia marketing campaigns.
During an October conference call, Xerox Chief Executive Anne Mulcahy said it would use its $1.5 billion in cash to ink more acquisitions, and would focus on software and those that boost its services business.
Author: Jonathan Vuocolo
Source: http://www.marketwatch.com/
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