Xerox: ACS Buy A Positive
By Gabriel Perna | June 10, 2010 11:43 AM EST
Xerox Chief Financial Officer Lawrence Zimmerman said the company's acquisition of Affiliated Computer Services (ACS) is on track to meeting expectations for the year.
Zimmerman told a group of investors at the UBS Global Technology and Services Conference in New York that the company's various integration efforts with ACS have been successful so far. Back in September, Xerox agreed to acquire ACS to expand its document management, IT outsourcing and accounting services. ACS operates as an independent subsidiary of Xerox.
According to Zimmerman, Xerox's outlook with ACS is on its way to meeting at least the company's top line expectations of $105 million for 2010. In all likelihood, Xerox will surpass those expectations. In the long term, Zimmerman said innovation from ACS will help yield profits.
Because ACS provides services not products, Xerox does not initially expect much revenue from sales. "There's a certain selling cycle to services that doesn't take five minutes, it takes a while," Zimmerman said. A pipeline of $500 million in business could close within the next six months to kick start ACS' revenue, he added. ACS' acquisition could also help bring new customers for both companies.
"We're finding a lot of customers who we have that are interested in hearing about ACS. On the other side of the coin, with ACS' ITO customers, they are interested in our document outsourcing," Zimmerman said.
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