Xerox has agreed to acquire Affiliated Computer Services in a cash and stock transaction estimated at $6.4 billion or $63.11 per share. In addition to fueling its growth in an expanding market, the purchase is expected hoist Xerox into the leading global enterprise for document and business process management.

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.