Atos, the French based IT services giant, is spending £670 million to acquire the outsourcing business of Xerox.
The move will significantly expand the size of Atos’s US business, bring 9,800 new employees to Atos and see Atos sign a long term agreement to become one of Xerox’s primary IT services suppliers.
Thierry Breton, Chairman and CEO of Atos (pictured right), said: “Increasing our position in the US is a major step in the completion of our three year strategic plan and responds to a strong demand from our global customers.
“This transaction will allow us to strengthen our footprint in the U.S. market which is an early adopter of high growth innovative technologies and to access a pool of talented and highly skilled technologists.”
Some 4,500 Xerox employees in the US will transfer to Atos, as will some 3,800 providing global delivery in countries such as India, the Philippines and Mexico. Xerox’s outsourcing unit had staff in 45 countries.
In the UK Atos last month signed a £125 million, four-year deal to provide end user computing services to the Ministry of Justice, servicing 90,000 end users.
The deal is subject to regulatory approval and is expected to be complete in the first half of 2015.
Image credit: Atos Flickr