Printing equipment heavyweight Xerox has reached an agreement to acquire Affiliated Computer Services (ACS), the world’s largest diversified business process outsourcing (BPO) firm via a cash and stock transaction valued at $63.11 per share or $6.4 billion. With this buy, Xerox expects to become number one in enterprise for document and business process management and to expand its reach in the BPO market which is worth $150 billion per year and continues to grow.

"By combining Xerox’s strengths in document technology with ACS’ expertise in managing and automating work processes, we’re creating a new class of solution provider," said Ursula M. Burns, Xerox chief executive officer. "A game-changer for Xerox, acquiring ACS helps us expand our business and benefit from stronger revenue and earnings growth."

Following the closure of the acquisition deal, which is planned for Q1 2010, ACS will as an independent organization and initially will be branded ACS, a Xerox Company. It will continue to led by Lynn Blodgett, ACS’ president and chief executive officer.