Established in 1989 as Truckload Management Inc., the company was acquired by ACS in February 2004. ACS is a $6.5 billion company with revenue growth of 6 percent and new business signings of $1 billion in annual recurring revenue during its fiscal 2009.
Xerox hopes the acquisition will expand its services with ACS's automation and management offerings.
"By combining Xerox's strengths in document technology with ACS's expertise in managing and automating work processes, we're creating a new class of solution provider," said Ursula Burns, Xerox CEO. "A game-changer for Xerox, acquiring ACS helps us expand our business and benefit from stronger revenue and earnings growth."
According to Kevin Lightfoot, spokesman for ACS, the company does not anticipate any disruptions to its services, including within its TripPak division, which will continue to operate independently and under the same management team. Lightfoot says customers of TripPak can expect additional savings as ACS leverages Xerox's document management platform.
Under the transaction, which should close in the first quarter of next year, ACS will operate as a separate entity, with the branding of ACS, a Xerox Company. Lynn Blodgett, ACS president and CEO, will head up the company, reporting to Burns.
ACS shareholders will receive a total of $18.60 per share in cash plus 4.935 Xerox shares for each ACS share they own, under the terms of the deal. In addition, Xerox will assume ACS's debt of $2 billion and issue $300 million of convertible preferred stock to ACS's Class B shareholder.
"When ACS was founded, we had a vision of becoming a best-in-class company by working harder than our competitors," said Darwin Deason, founder and chairman of ACS. "More than 20 years and 74,000 employees later, as the world's top BPO company, we have now found a partner to help us reach even greater heights."