Xerox Spends US$1.5B on GIS Acquisition

By Greg McNevin

April 5, 2007: US copy and printing colossus Xerox has just announced that it will acquire document management specialist Global Imaging Systems (GIS).

In a deal worth US$1.5 billion, or US$29 per share, GIS will act as a subsidiary of Xerox, opening up access to its 200,000 customers and giving the copy giant an extra 4,500 workers to aid distribution.

"Joining forces with Global Imaging Systems gives Xerox access to their extensive customer base and adds more than 1,400 ’feet on the street’ selling Xerox systems," said Anne M. Mulcahy, Xerox chairman and chief executive officer.

"Xerox already has the industry’s largest portfolio of document systems and services and the broadest U.S. distribution network. With Global’s localised expertise, experienced employees, and deep customer relationships, we’ll increase our distribution to SMB customers by more than 50 percent at a time when our portfolio is at its strongest, earning an even greater share of the $16 billion SMB document market in the U.S," added Mulcahy.

Over time GIS will add the full range of Xerox office and production products and supplies, including all Phaser and WorkCentre printers and multifunction systems, as well as Xerox Nuvera and DocuColor digital presses to its sales channel.

After closing a US$175 million acquisition of electronic-discovery service provider Amici LLC and a US$54 million takeover of multimedia marketing firm XMPie, this deal marks the third for Xerox in the past year. It is expected to close in May.

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