Affiliated Computer Services is a diverse business process outsourcing firm with 6% revenue growth, and new business signings of $1 billion in annual recurring revenue during fiscal 2009. With the buyout, Xerox becomes a $22 billion global company -- of which $17 billion is recurring revenue. The revenue generated from services will triple from $3.5 billion last year to roughly $10 billion next year.
In the agreement, ACS shareholders will receive a total of $18.60 per share in cash, plus 4.935 Xerox shares for each ACS share they own. Additionally, Xerox will pick up ACS's $2 billion debt and issue $300 million of convertible preferred stock to ACS's Class B shareholder.