Xerox to buy Global Imaging Systems

Increases Xerox’s U.S. distribution to SMB customers by 50 percent; 1,400 more ‘feet on the street’ serving 200,000 new customers  

Xerox Corporation and Global Imaging Systems, Inc. today announced a definitive agreement for Xerox to acquire Global Imaging for $29 per share in cash. The total purchase price is expected to be about $1.5 billion.

Global Imaging Systems focuses on small and mid-size businesses (SMB) through 21 regional core companies in the U.S. that sell and service document management systems such as printers, copiers and multifunction devices; network integration services; and electronic presentation systems. As an office technology dealer, Global sells products from various suppliers, none of which today include Xerox. In addition to its existing offerings, Global will start selling Xerox document management products following the close of the acquisition. 

“Joining forces with Global Imaging Systems gives Xerox access to their extensive customer base and adds more than 1,400 ‘feet on the street’ selling Xerox systems,” said Anne M. Mulcahy, Xerox chairman and chief executive officer.

Global Imaging, headquartered in Tampa, Fla., serves nearly 200,000 customers across the U.S. that generate for the company more than $1 billion in annual sales. Through the acquisition, Xerox will benefit not only from increased equipment sales but also from the strong annuity stream that comes from the service and supplies to support these products.  

“Xerox already has the industry’s largest portfolio of document systems and services and the broadest U.S. distribution network,” added Mulcahy. “With Global’s localized expertise, experienced employees, and deep customer relationships, we’ll increase our distribution to SMB customers by more than 50 percent at a time when our portfolio is at its strongest, earning an even greater share of the $16 billion SMB document market in the U.S.”

According to IDC, a leading industry research firm, installs of laser printers and multifunction products in small and mid-size businesses have been increasing at a compound annual growth rate of 15 percent over the last five years. 

Global Imaging started as a small distribution network and has grown into a national leader in providing office technology for SMB customers, like law firms, doctors’ offices, accounting agencies, manufacturing companies and more. “Our customers require highly skilled sales representatives, reasonably priced quality technology, and superior service and support at the local level,” said Tom Johnson, chairman and CEO of Global Imaging Systems, who founded the company in 1994. “As a Xerox company, we’ll be better positioned to exceed our customers’ requirements. Through the entrepreneurial spirit of our core companies, we’ll provide one-stop shopping with Xerox as a leading brand supported by dedicated local service. Our stakeholders – customers, shareholders and employees – all benefit from this opportunity to be part of Xerox.”