Xerox Corp. said Monday that it would buy Affiliated Computer Services Inc. for $6.4 billion in cash and stock, joining the expensive race among technology companies to broaden their offerings.
Xerox said the deal would create a $22-billion business that combines Xerox's copiers, printers and document management services with the "business process outsourcing" of Dallas-based ACS. Outsourcers like ACS take on tasks for companies such as helping manage payroll or run healthcare plans.
The move takes Xerox, based in Norwalk, Conn., deeper into the back-office operations of its customers with the kind of acquisition that is increasing as technology companies add a greater variety of equipment and services under a single tent.
ACS, a $6.5-billion company with about 74,000 employees and profit of $350 million in its last fiscal year, offers a range of services, such as helping companies manage healthcare plans and accounting. It has customers in government, transportation, healthcare and retail.
By buying ACS, Xerox sees a way to boost profits and expand the roles it can play in helping clients run their businesses.
Xerox shares fell $1.30, or 14%, to $7.68, bringing the per-share value of the transaction to about $56.50.