Office equipment manufacturer Xerox is paying US$6.4 billion for an IT outsourcing firm in a takeover meant to broaden revenue and diversify from recession-hit sales of photocopiers, printers, paper and ink.
The deal for Affiliated Computer Services (ACS) is the largest in Xerox’s history and will triple the size of the US group’s consulting services arm, which helps business customers tailor technology needs.
“The combination of these two companies has been called for by our clients,” Xerox chief executive, Ursula Burns said. “They’re telling us more and more that we could bring the two companies together and help them become more efficient.”
Xerox, the world’s biggest brand in copying, can trace its imaging history to the invention of the first xerographic image by a New York patent attorney, Chester Carlson, in 1938. The company coined the name Xerox from the Greek words for “dry” and “writing.”
However, the Connecticut-based corporation has suffered in the recession as business customers cut back on spending on machines, paper and ink.
The credit crunch has cut the financial services industry’s need for reams of copies of legal documents for mortgages, loans and other transactions.
Xerox’s sales for the three months to June were down 18 percent to US$3.7 billion.
ACS, based in Dallas, will add 74,000 employees to Xerox’s payroll of 54,000 people. It provides outsourcing services to a variety of industries ranging from government to healthcare, financial services and transport.
Xerox is paying for ACS through a mixture of cash and stock at US$63.11 per share. Xerox’s stock plunged at the opening bell on Wall Street, falling by 17 percent to US$7.38.
The transaction is the first big move for Burns, who took over as chief executive in July.
The first black woman to head a Fortune 500 firm, she replaced Anne Mulcahy, who steered Xerox through an accounting scandal and a financial crisis at the start of the decade.
FORCED LABOR: Customs officials have seized a 11.8 tonne shipment of products made from human hair on suspicion they were produced by people facing human rights abuses Federal authorities in New York City on Wednesday seized a shipment of weaves and other beauty accessories suspected to be made out of human hair taken from people locked inside a Chinese internment camp. US Customs and Border Protection (CPB) officials said that 11.8 tonnes of hair products worth an estimated US$800,000 were in the shipment. “The production of these goods constitutes a very serious human rights violation, and the detention order is intended to send a clear and direct message to all entities seeking to do business with the United States that illicit and inhumane practices will not be tolerated in
IRRESPONSIBLE ATTITUDES? Some experts say the NHI system does not do enough to educate the public, or pay doctors to talk to patients, about healthy lifestyles While the life expectancy of Taiwanese newborns in 2018 reached 80.69 years, the number of years people spent in poor health hit a record high at 8.41 years, Ministry of Health and Welfare statistics showed on Saturday. Healthy life expectancy is calculated by a person’s life expectancy minus the time they spend in ill health, such as the loss of mobility, disabilities and chronic disease, based on medical records and calculations about the years they live with disabilities. The number of years that Taiwanese spend in poor health is increasing slowly, but steadily, rising by 0.46 years, or five-and-a-half months, between 2012
UPTICK IN NUMBERS: The Taipei deputy mayor said the city has services to assist new immigrants, but has established an office specifically to help those from Hong Kong The Taiwan-Hong Kong Services and Exchanges Office today officially opens, where it is to provide humanitarian assistance to Hong Kongers, after Beijing yesterday passed a controversial national security law for the territory. President Tsai Ing-wen (蔡英文) expressed dismay over China’s passage of the law, saying that Beijing has broken its pledge to allow Hong Kong to maintain a high degree of autonomy for at least 50 years following its handover from the UK. “I feel extremely disappointed [about the law’s passage], which means China did not keep its promise to Hong Kong,” Tsai said in Taipei. Beijing’s “broken promise” also
‘BASELESS ACCUSATIONS’: Ker Chien-ming said it was not possible to drop Chen Chu’s nomination, while KMT lawmakers accused their DPP rivals of ‘homicidal behavior’ The Legislative Yuan is to vote on President Tsai Ing-wen’s (蔡英文) nominations for the Control Yuan on July 17 after Democratic Progressive Party (DPP) legislators regained access to the legislative chamber yesterday after it was occupied by Chinese Nationalist Party (KMT) lawmakers for about 19 hours. The Legislative Yuan had been scheduled to meet yesterday morning to discuss its planned extraordinary session, but more than 20 KMT lawmakers on Sunday afternoon broke into the main chamber and occupied the legislative speaker’s podium to protest Tsai’s nomination of former Presidential Office secretary-general Chen Chu (陳菊) to be Control Yuan president. The KMT caucus