Atos buys up Xerox ITO, splashing almost $1 billion in process
French firm sets its sights on US takeover
Atos has completed its acquisition of Xerox's outsourcing biz as the French firm gears up for an American invasion.
The company snapped up Xerox ITO (Information Technology Outsourcing) for $966m (£618m), slightly less than the initial $1.05bn (£670m) agreement announced back in December.
Thierry Breton, Atos chief exec, said: “Today marks a major step in the development of the Atos Group, as we welcome 9,600 Xerox ITO employees to Atos."
He added that the US is the firm's largest market, and "we have a stronger and more balanced global presence".
Georgina O'Toole, an analyst at TechMarketView, said the deal will help Atos rebrand itself from being a purely European outsourcing biz.
She added: "Atos expects the deal to be immediately accretive to earnings and deliver a 10 per cent margin in the first year."
The deal for the company's ITO unit will add $1.5bn (£960m) of revenue to Atos's €8.6bn (£5.5bn) turnover.
This is its second big deal in as many years, having bought fellow Frenchy company Bull in May 2014 for €620m (£485m). ®