April 2, 2007 7:46 AM PDT
Xerox to nab Global Imaging for $1.5 billion
Xerox expects to boost its sales to small and midsize businesses by more than 50 percent with the acquisition of the printer and imaging company, which owns a decentralized network of 21 companies in the United States.
"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," Anne Mulcahy, Xerox chief executive, said in a statement.
Global Imaging, based in Tampa, Fla., sells and services printers, copiers, fax machines, multifunction devices, and video-conferencing and other electronic-presentation systems from various suppliers, which currently do not include Xerox. Global Imaging, which had just over $1 billion in sales in fiscal year 2006, also offers network integration services.
After the close of the deal, which is expected in May, Global Imaging will operate as a wholly owned subsidiary of Xerox and will begin selling its products. Global Imaging, which was founded in 1994 and has about 4,500 employees, will retain its Florida headquarters.
Under the deal, Xerox will pay $29 for each share of Global Imaging's common stock. In morning trading, shares of Global were up 47 percent to $28.75.