Xerox Corp is interested in buying services company XLConnect Solutions Inc, according to reports in the Wall Street Journal. XLConnect, a subsidiary of struggling distribution company Intelligent Electronics Inc of Exton, Pennsylvania, which last year sold off its reseller arm to Ingram Micro Inc (CI No 3,152), would boost Xerox’s efforts to get its booming digital photocopy business integrated into office networks, potentially expanding its market into full-scale, computer-based office document systems. IDC figures show Xerox with a 29% share of the US market for digital copiers, ahead of competitors such as Canon Inc, Konica Corp and Ricoh Inc. They now account for 41% of Xerox’s revenues. Xerox needs to boost its systems integration and network services capabilities if it is to take full advantage of the market opportunities. XLConnect, which claims to have 1,200 engineering and technical professionals on its books, offers large and medium-sized organizations applications development, internetworking, telecommunications and managed services. Revenues for the year ending December 31 were $135m, on which it generated net income of $5m. Neither company would comment on the rumors.
