Summary

While the industry catches its breath awaiting the next multi-billion dollar deal among outsourcing titans, we think the time is right to take a step back and reflect on the bigger picture for a moment. Focusing on Xerox’s announced acquisition of ACS, it makes sense to elevate the discussion to examine what it means for Xerox’s shareholders, the combined entity’s customers, and global sourcing competitors.

On September 28, 2009, Xerox announced that it would acquire ACS for $6.4 billion in a cash and stock deal as of the closing price of Xerox stock on September 25.  For Xerox, the overarching question is one of the scope and scale of impact of this important acquisition. Is ACS a smart tactical play that will be a channel for Xerox’s document management technology … or is it a strategic coup with the potential to have a much greater impact on the industry and Xerox’s future? We explore this question – and a myriad of additional questions it raises – from a point of view of three key stakeholder groups:  the shareholders, the customers, and the competition.