XEROX CORP BUYS ILLINOIS UNITED BUSINESS SOLUTIONS
Xerox Corp. recently announced that its wholly owned subsidiary, Global Imaging Systems (GIS) has recently acquired Illinois-based United Business Solutions to strengthen its distribution network in the domestic market.Established in 1982, United Business Solutions LLC was an independent dealer and distributor of copiers, printers and multifunction systems prior to the Xerox acquisition. The company offers document management and software solutions to thousands of organizations in the Chicago market. The company is also considered one of the fastest growing office equipment dealers in the Chicago market.
This new development will enable United Business Solutions to utilize Xerox technology to improve its quality of services. On the other hand, as a part of its expansion strategy GIS is determined to create a network of efficient distribution nationwide network of locally-based providers focused on improving document workflow and office efficiency for small and mid-size businesses. The acquisition of United Business is surely a big step toward achieving this goal. Few months back, GIS also purchased assets of Pensacola-based Florida Imaging & Network Systems with the same objective.
With all these agreements, contracts and acquisitions, Xerox aims to capitalize on the growing market in order to strengthen its financial performance in the upcoming quarters.
Fiscal 2010 proved to be quite fruitful for Xerox with revenues of $21.6 billion, up 42% from the year-ago level. The company’s net earnings were recorded at $1.30 billion or 94 cents per share compared with $613 million or 70 cents per share in the previous year. The company expects to see better performance going forward based on its attempt to grow and expand its business, particularly the Business Process Outsourcing.
Consequently, Xerox projected adjusted earnings in the range of $1.05 to $1.10 per share for full-year 2011. However, intensifying competition and availability of substitutes for the company’s products have put the company in the back foot.