Xerox Inc. has agreed to buy IT services firm Affilliated Computer Services, Inc. for $6.4 billion. The major copier company is following in the footsteps of hardware giants Dell and HP, who recently purchased service companies Perot Systems and EDS, respectively. The new Xerox-ACS firm would boast over $22 billion in annual revenue, and as much as $400 million in synergies could be realized in the first three years after the merger.
ACS President and CEO Lynn Blodgett commented on the merger, “…we need a partner with tremendous brand strength and leading innovation. Xerox offers that and more…”