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Merlot and hot dogs: Atos snaps up Xerox's outsourcing biz for $1.05bn

Plan for world domination based on shrugs and '3-year strategic plan’

Un Frog

French IT services giant Atos has snapped up Xerox's outsourcing biz for $1.05bn (£670m), as it tries to extend its garlic and lemon-infused tentacles across the American market.

The deal for the company's Information Technology Outsourcing unit will add $1.5bn (£960m) of revenue to Atos's €8.6bn (£5.5bn) turnover. Of Xerox's 9,800 ITO employees, 4,500 are based in the US.

It is the second major acquisition for the outsourcer after it bought fellow French company Bull in May for €620m (£485m).

Thierry Breton, CEO of Atos, said the move will significantly strengthen the outsourcer's footprint across the pond. “Increasing our position in the US is a major step in the completion of our three-year strategic plan," he said.

Atos currently employs 76,320 staff. The Xerox ITO top brass is to join Atos, with the deal is expected to close in the first half of 2015.

Ursula Burns, Xerox CEO, said: "Selling the ITO business to Atos gives our clients around the globe an expanded, world-class suite of IT capabilities."

As part of the deal, Atos will provide IT services to Xerox.

Atos's US revenues increased 6.7 per cent for the year ended 2013 to €607m (£476m). UK revenue rose 2.7 per cent to €1.65bn (£1.3bn). ®

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