Xerox is selling its Information Technology Outsourcing (ITO) business to French IT services firm Atos for $1.05bn. Xerox has been looking for a buyer for this unit and says that the deal will allow it to focus on Business Process Outsourcing (BPO) and Document Outsourcing businesses. For Atos, it means getting a US business that becomes the largest in its regional portfolio, tripling the size of its US operation.
The Xerox IT outsourcing business unit employs 9,800 employees in 45 different countries with 4,500 of them in the US and 3,800 in global delivery countries.
Thierry Breton, Chairman and CEO of Atos, said: “Increasing our position in the US is a major step in the completion of our three year strategic plan and responds to a strong demand from our global customers. This intended transaction would allow us to strengthen our footprint in the US market which is an early adopter of high growth innovative technologies and to access a pool of talented and highly skilled technologists.”