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Atos to buy Xerox IT outsourcing business for USD 1.05 bln
2014-12-19 08:50:00| Telecompaper Headlines
(Telecompaper) French IT services group Atos has reached an agreement to buy US business services, technology and document management company Xerox's IT outsourcing business for USD 1.05 billion in cash and to become a primary IT services provider for Xerox. The move will nearly triple the size of Atos's business in the US, which would become its biggest operating geography. The transaction includes an additional USD 50 million subject to the condition of certain assets at closing. Xerox's IT outsourcing business employs about 9,800 employees in 45 countries, 4,500 of whom are in the US. It will have an estimated USD 1.5 billion of revenue this year. Xerox currently uses Atos for IT outsourcing work in Europe. Acquiring Xerox's IT outsourcing business provides Atos with a broader geographic footprint and the ability to support the needs of its European and US clients anywhere in the world. This adds breadth to its already deep services portfolio and leading technologies, particularly in cloud, big data, cyber-security, and in high power computing. The intended transaction, which has received the unanimous support of both the Atos and Xerox boards, is subject to customary closing conditions, regulatory and antitrust approvals, and consultation, when relevant, with employee representative bodies. The transaction is expected to close in the first half of 2015.
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