Xerox Agrees To Buy Global Imaging Systems

Xerox on Monday said it has agreed to buy office-equipment supplier Global Imaging Systems for $1.5 billion in cash. If completed, the deal would open nearly 200,000 of Global's customers across the United States to Xerox.

Under the deal, Xerox would pay Global stockholders $29 a share, and operate the company as a wholly owned subsidiary. Tom Johnson, Global chairman and chief executive; and Michael Shea, president and chief operating officer, would continue to lead the company. Xerox said it expects to complete the transaction in May.

Global sells and services electronic presentation systems and document management systems, such as printers and copiers, and devices that combine the two. The company sells to small and midsize businesses through 21 regional companies in the United States. Global sells equipment from various suppliers, but does not sell any Xerox products.

In buying Global, Xerox would get access to its 200,000 customers, and add 1,400 salespeople, Anne M. Mulcahy, Xerox chairman and chief executive, said in a statement.

"With Global's localized expertise, experienced employees, and deep customer relationships, we'll increase our distribution to SMB customers by more than 50% at a time when our portfolio is at its strongest, earning an even greater share of the $16 billion SMB document market in the U.S.," Mulcahy said.

Over time, Global said it would add to it's offerings Xerox's full range of office and production products and supplies, including all Phaser and WorkCentre printers and multifunction systems that print, copy, fax, and scan; as well as Xerox Nuvera and DocuColor digital presses.

Global, which has 4,500 employees, would keep its headquarters in Tampa, Fla. The acquisition is the third for Xerox in the last year. In July 2006, Xerox paid $175 million cash for Amici, a provider of electronic-discovery services that support litigation and regulatory compliance. In November, Xerox acquired XMPie for $54 million. XMPie sells software for personalized, multimedia marketing campaigns.