Xerox selling its IT outsourcing unit to France’s Atos

December 19, 2014, 3:13 PM UTC
Key Speakers At The Export-Import Bank Annual Conference 2013
Ursula Burns, chief executive officer of Xerox Corp., listens during the U.S. Export-Import Bank annual conference in Washington, D.C., U.S., on Friday, April 5, 2013. The Export-Import Bank is an independent federal agency that helps create and maintain U.S. jobs by filling gaps in private export financing at no cost to American taxpayers. Photographer: Andrew Harrer/Bloomberg via Getty Images
Photograph by Andrew Harrer — Bloomberg via Getty Images

Xerox has struck a deal to sell its information technology business to France’s Atos for $1.05 billion.

The move is part of a larger transformation led by CEO Ursula Burns. Xerox (XRX), which is best known for its old school printers, is repositioning itself to become a business-to-business expert, focusing on human resources, financial services and data services for multinational firms.

Xerox opted to get out of the IT game, a space that is a core specialty for Atos. Xerox and Atos have a long-established relationship. Xerox provides print, human resources and financial services for Atos, while the French IT company handles the tech infrastructure for Xerox in Europe. The deal now expands the relationship, and Atos will take over even more of Xerox’s IT services.

“We had a lot of success with the IT outsourcing business, but we were subscale versus the larger players,” Robert Zapfel, president of Xerox Services, told the New York Times.

Atos will take on the IT outsourcing business’ 9,800 workers, about 4,500 of which are in the U.S. The deal, which is still subject to regulator and antitrust approvals, is expected to close in the first half of 2015.

Read More

CryptocurrencyInvestingBanksReal Estate