Atos has acquired the information technology outsourcing (ITO) business from Xerox for $1.05 billion.
The IT outsourcing biz of Xerox is expected to have revenue of $1.5 billion in 2014. The transaction will enable Atos to strengthen its footprint in the U.S. and Europe. BPO market. Xerox has around 4,500 resources in the U.S. market.
Thierry Breton, chairman and CEO of Atos, said: “Increasing our position in the U.S. is a major step in the completion of our three year strategic plan and responds to a strong demand from our global customers.”
Acquiring Xerox’s IT outsourcing business provides Atos with a broader geographic footprint and the ability to support the needs of its European and U.S. clients anywhere in the world.
Xerox’s ITO business includes nearly 9,800 ITO employees in 45 countries, with 4,500 in the U.S. and more than 3,800 in global delivery countries such as India, the Philippines and Mexico.
As part of the transaction, Atos will provide IT services to Xerox. Xerox currently uses Atos for ITO work in Europe.
Atos has clocked annual revenue of €10 billion and 86,000 employees in 66 countries.