Xerox snaps up ACS in $6.4 billion takeover; investors think it overpaid
Ursula Burns isn't wasting any time.
Elevated to CEO of Xerox Corp (XRX) in July, Burns, the first African-American woman to lead an S&P 100 company, has orchestrated a major takeover Xerox hopes will give it a bigger foothold in the business services space. Xerox said Monday that it would pay $6.4 billion in cash and stock for Affiliated Computer Services (ACS), a large IT and outsourcing firm.
While the deal will surely boost Xerox, investors wondered whether Burns paid too dear a price: Xerox shares were trading down nearly 10 percent in pre-market activity Monday. ACS shares, meanwhile, were up over 20 percent in early trading.