I'm sure it works out for the one who gets the check but employees of the acquired company? 'Good News, you now work for xerox!'Vader Systems? GIS? ____? Any buyout worked out well for employees of a buy out? No '100 years nonsense... please be specific.
https://www.news.xerox.com/news/xerox-acquires-itsavvy-to-grow-it-services-presence
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Yes..GIS initially, was a great revenue stream, but currently in its dismantled state...I see very little business being done at the local GIS core that I have worked at for many years. It is a shell of its former self. Very frightening actually. So , at this point the GIS purchase was a waste of money. If the powers that be, would have promoted the GIS structure...xerox would have been far ahead from where they are now. imho.IMHO.. thanks for listening
I worked directly with a few of these. The integration of different company philosophies ki-led some, and the vast differences between being a startup or regional company vs. the expectation/needs of a global corporation ki-led others. Impika, ACS/Conduent, Vader suffered essentially the same fates (though Conduent survives still). In many ways, Vader (ElemX) was the worst example, driven to failure at least as much by the ineptitude and hubris of its appointed “leaders” as by limitations of the technology.
Beginning in the 80’s Time and History show that whatever Xerox touches turns to sh-t.
ACS was a BPO acquisition not IT Services. At best, it was a consulting acquisition if you don’t agree with BPO.
GIS was a good acquisition for several reasons but most importantly because they were the largest tuck in and industry consolidation. They beat everyone else in the industry to an acquisition. You can make a case on revenue transfer and accounting but they were highly profitable. Helped manage decline for the last 15 years.
$400m is a non starter from saving the sinking ship. I agree they need to make these small acquisitions and build it out like GIS legacy business plan with tuck ins. They’ll sc--w up a large takeover not being from the business. They need to think bigger than Managed Services and IT Services. They need to get into the software and Consulting business. Workday, Salesforce, ServiceNow, etc. Not only high margins but they’re partner friendly ecosystems. Perfect for a dealer channel already in place.
I hope the latest acquisition succeeds but wasn't the acquisition of ACS in 2009 for $6B (now Conduent) primarily an IT services company acquisition? Most of their businesses units shut down, and Xerox had to spin the company to eliminate the drag, and the remaining spin company has struggled with IT services ever since. XL Connect was another IT services acquisition back in 1998...Xerox paid $410M for that unit, that would be a billion dollar acquisition in 2024 dollars. I'm not sure what we got out of that acquisition either.
Next moves, HCL convinces Stevie they can do all the admin work better and cheaper. Transfer jobs to them. Fire all the employees that actually were generating the $400 mil. Pay XRX senior staff an additional retention bonus. At least $2m for Steve. Watch revenue disappear. These guys are lost. They don’t have the basics. UB laughs at them!
$220 we don’t have and more debt. The revenue is irrelevant. We need cash and net income.
The $400M isn't $400M immediately, it's $180M plus promissory notes.
The pension and we're decided on this time last year.
There's $400M in revenue as an offset. They need to get new markets to start down all the ideas and declining print revenue and profits isn't going to cut it any longer.
Dear respectful x-x employee please read tea leaf they buy to avoid the thrashing at earning call wise man once say when in doubt of your success spend 200 million so you can keep make 15 million.
just remember, this $400M buyout was at the expense of shoring up the Xerox pension funding, and reducing the pension cash out to 50% max.
GIS was acquired for roughly $1.5 billion. At the time GIS revenues were $1.1 billion. Over the next 11 years (until Icahn and his bandits began the destruction in May of 2018) GIS actually represented between 70-80% of ALL Xerox entire bottom line. When the “hole in the boat” man who was a self professed expert in everything, never took the time to understand the profitable market that GIS served so strongly, he began the free fall. RIP “hole in the boat man”. Your legacy was very predictable.
GIS was a non starter and an accounting tool. Surprised Xerox never got caught for accounting irregularities.
If Xerox did not buy GIS we would be 1 billion yr less in revenue. GIS was Ricoh/Canon dealer, instantly switched clients to Xerox. The only one I can think of. Not sure of how much to buy GIS, and how much is GIS contributing to revenue and profit annually. Does anyone know what Xerox paid and how much revenue, how much profit they deliver each year?
It may be small, but at least they are acquiring and investing versus divesting.
Now sc--wing it up is entirely possible,and woukd run very true to form.
I hope I'm wrong.
I cannot think of one. This is so small though it won't matter except for the employees that currently work there. Usually, the equity sellers make out the best. The ACS guy is still laughing.