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News : Xerox Offloads IT Outsourcing Business
Dec 23, 2014 -- Xerox sold off its IT outsourcing business to European conglomerate Atos.
The boards of both companies have approved the deal, which is expected to close sometime in the first six months of 2015 pending regulatory approval and consultation with employee representative groups.
As part of the deal, Atos will gain Xerox’s ITO clients and become a primary IT service provider to Xerox. The Xerox ITO executive team will transition to Atos as will the employees that work for the unit, about half of which are employed in the U.S.
Xerox said the sale will enable it to concentrate on its business process outsourcing and document outsourcing operations within its services unit.
"This transaction is another step in our ongoing portfolio management strategy and increases our focus on those areas where we can deliver the most value and expertise to our clients," said Ursula Burns, Xerox chairman and chief executive.
The two companies have worked together for a number of years, with Xerox supplying Atos with managed print, human resource and financial services and contracting back for ITO services in Europe.
Atos said the deal expands its geographic reach and services capabilities in cloud, big data, security and high performance computing, particularly in the U.S. and Europe.
"Increasing our position in the U.S. is a major step in the completion of our three-year strategic plan and responds to a strong demand from our global customers," said Thierry Breton, Atos chairman and chief executive. "This transaction will allow us to strengthen our footprint in the U.S. market, which is an early adopter of high growth innovative technologies, and to access a pool of talented and highly skilled technologists," he said.
Posted by Veronica Silva Cusi, news correspondent
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Xerox Corporation is a fortune 500 global document management company (founded in 1906) which manufactures and sells a range of color and black-and-white printers, multifunction systems, photo copiers, digital production printing presses, and related consulting services and supplies. Xerox is headquartered in Norwalk, Connecticut (moved from Stamford, Connecticut in October 2007), though its largest population of employees is based in and around Rochester, New York, the area in which the company was founded.
Atos is an international information technology services company with annual 2011 pro forma revenue of EUR 8.5 billion and 74,000 employees in 48 countries. Serving a global client base, it delivers hi-tech transactional services, consulting and technology services, systems integration and managed services. With its deep technology expertise and industry knowledge, it works with clients across the following market sectors: Manufacturing, Retail, Services; Public, Health & Transports; Financial Services; Telecoms, Media & Technology; Energy & Utilities.
Published: Monday, December 29, 2014