Xerox Acquires ACS (and therefore Buck Consultants) - 29 Sep 2009
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Xerox Inc. announced Monday
it had agreed to buy Dallas-based BPO/HRO outsourcer Affiliated
Computer Services Inc. (ACS) in a $6.4-billion deal designed to help
more strongly diversify the Xerox revenue stream away from products
into services. A Dow Jones news report said the ACS deal
is expected to send Xerox's service revenue skyrocketing from 2008's
$3.5 billion to an estimated $10 billion by 2010. The Connecticut-based
Xerox has seen a steady decline in revenue from its copier and printer
sales as well as from accompanying ink, toner, and paper, the news
report said. ACS is also the parent company of Buck Consultants LLP. By the way, shares of ACS jumped 14% on the news - shares
of Xerox fell 14.4%.
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I can't really see how Xerox will remain in the Compensation and HR Consulting business, but maybe some of you can.
I wonder if this means that Buck will once again become an independent entity or if it means that one of the other compensation consulting firms will acquire it.
Any thoughts?
Between this and Dell acquiring Perot, I'm still a bit confused. Isn't HP trying to sell their consulting services business? Will these acquisitions force companies like Accenture and Hewitt Associates to find suitors? Kind of reminds me of the time when energy companies were getting into broadband (Enron, Williams, etc.). The acquisitions don't seem to make sense.