More Acquisition Plans Despite Disappointed Investors

Xerox has set aside US$100 million for acquisitions this year, according to company chairman Ursula Burns.

“We have still $100 million in our plan for M&A—fairly modest plans for 2016,” Burns said.  According to Burns admitted it was a small investment. The company spent $18 million on acquisitions earlier this year.

It is very small when compared to Aftermarket Apex’s proposal to acquire Lexmark for US$3.6 billion. It is even smaller compared with Xerox’s 2010 US$6 billion acquisition of Affiliated Computer Services Inc. (ACS).

The Connecticut-based technology giant, which invented photocopying and laser printing, plans to acquire smaller firms to outsource some of their business services. The plan for to acquire smaller firms has come ahead of the OEM’s split into two companies at the end of this year.

Burns says acquiring new companies to increase income will continue to be the way forward for Xerox.

However, Xerox has continued to struggle with acquisitions like ACS. In 2014, it sold its IT outsourcing arm to Atos. The results continued to disappoint investors, with the company’s outsourcing revenue dropping 5% last year.

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