Atos zeroes in on Xerox ITO (update)

Shares in Atos rose almost 5% following the announcement that it would be acquiring Xerox’s global ITO business for up to $1.1bn.

It’s clear that this is a good deal for Atos. It expects the business to be immediately accretive to earnings and deliver a 10% margin in the first year. Part of this is going to be achieved by consolidating and integrating the business into Atos’ managed services operations.

Xerox meanwhile has suffered for its 'Services ambitions' for too long (see here and work back), and so a decision to either get bigger or get smaller had to be made.

Subscribers to TechMarketViews research services can read our analysis of the deal here.

Posted by: John O'Brien at 16:28

Tags: bpo   manda   ito  

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