As we reported it would (CI No 3,360), Xerox Corp has gone ahead and bought network integrator XLConnect Solutions Inc for $415m in cash. Xerox wants the 1,500-strong company to boost sales of digital photocopying equipment by offering easy integration into office networks. The added services capabilities will also help Xerox to expand its document services outsourcing business, which its says grew 58% to $2bn in 1997. Xerox will handle the transaction by acquiring struggling distribution company Intelligent Electronics Inc of Exton, Pennsylvania, which holds 80% of XLConnect. It will also acquire the 20% of the company publicly owned. Xerox says it’s paying $7.60 for each Intelligent Electronics share and $20 a piece for the XLConnect shares. The deal is subject to shareholder and regulatory approval but is expected to close quickly. XLConnect claims 27 locations throughout the US and saw 1997 revenues of $135m.
