Xerox to Spend $100 Million Acquiring Independent Copier Dealers, Converting them to the Xerox-Only Brand
CRN reports that Xerox will spend some $100 million in 2017 to acquire more multi-brand copier/MPF dealers and then convert them into Xerox-exclusive dealers, as well as gain entry into emerging markets
CRN states that the firm and its Global Imaging Systems (GIS) business group plans to continue buying independent, multi-brand dealers, and then convert them to dealers focused only on the Xerox copier/MFP brand, according to Bill Osbourn, Xerox’s chief financial officer.
Accrording CRN, Osbourn said that these dealers usually only cost one-times their annual revenue, and that Xerox “has historically enjoyed a very good return from these deals.” Osbourn said the Xerox “will continue looking for opportunities to carry out multi-branded resellers acquisitions not only in the United States, but also internationally, in 2017 and beyond.”
According to Xerox CEO Jeff Jacobson, Xerox’s Global Imaging Systems “has enjoyed great success in the North American SMB channel and is looking to replicate that performance in Europe.” ,
“We have solid plans in place to capture opportunities in our strategic growth areas to change the trajectory of our company’s top line and outperform the market over time,” Jacobson told Wall Street analysts during the company’s earnings call on Tuesday.
Xerox is said to be also exploring acquisition opportunities in areas such as document-workflow automation and software, but may have to pay more for such companies than one-times their annual revenue.
Jacobson also said Xerox may be looking into acquisitions of businesses that would help it get into the commercial offset-print and package-printing markets. The Xerox CEO also said that “Xerox is very focused in moving beyond printing on paper to printing on packaging, plastics and electronics,” and will also continue investing in production- and inkjet-printing businesses.
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