STANFORD, CT, & TAMPA, FL—Xerox Corp. (NYSE:XRX) said it has reached a definitive agreement to acquire Tampa-based Global Imaging Systems Inc. for $29 per share in cash. The total purchase price is expected to be about $1.5 billion.
Global Imaging Systems focuses on small and mid-size businesses (SMB) through 21 regional core companies in the U.S. that sell and service document management systems such as printers, copiers and multifunction devices; network integration services; and electronic presentation systems. As an office technology dealer, Global sells products from various suppliers, none of which today include Xerox. In addition to its existing offerings, Global will start selling Xerox document management products following the close of the acquisition.
“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.
Global Imaging, headquartered in Tampa, Fla., serves nearly 200,000 customers across the U.S. that generate for the company more than $1 billion in annual sales. Through the acquisition, Xerox will benefit not only from increased equipment sales but also from the strong annuity stream that comes from the service and supplies to support these products.
Global specializes in small business customers such as doctors and lawyer’s offices, and accounting agencies.
According to IDC, a leading industry research firm, installs of laser printers and multifunction products in small and mid-size businesses have been increasing at a compound annual growth rate of 15 percent over the last five years.
Global Imaging will keep its headquarters in Tampa, Fla. Its 4,500 employees will continue to operate as part of Global in the company’s 21 regional core companies.
The transaction, subject to customary closing conditions and regulatory approval, is expected to close in May.
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