Xerox Holdings Corporation (NASDAQ: XRX) announced Thursday it has agreed to acquire ITsavvy, an Oak Brook, Illinois-based provider of integrated IT products and associated services, for $400 million. The deal consists of a $180 million cash payment and secured promissory notes totaling $220 million, subject to certain customary pre- and post-closing adjustments and escrow arrangements.
The transaction is expected to close during the fourth quarter of 2024 and remains subject to merger clearance control. ITsavvy is a portfolio company of GenNx360 Capital Partners, a New York-based private equity firm.
“As part of our Reinvention we have created a greater organizational focus on our emerging IT Services capabilities to diversify our revenue streams in the geographies we serve,” said John Bruno, president and chief operating officer at Xerox. “ITsavvy’s complementary offerings, aligned with our strong reputation, should accelerate growth in the United States, Canada, and the United Kingdom, while creating new avenues for us to help existing and new clients transform the way they work. They have a proven track record of success, and we look forward to bringing this highly capable and experienced team into the fold.”
ITsavvy is a leading provider of integrated IT infrastructure solutions, delivering business outcomes through frictionless client experiences across multiple segments and industries. Founded in 2004, ITsavvy has grown its revenue to more than $400 million on a trailing twelve-month basis by offering a comprehensive suite of lifecycle, deployment, and managed IT services to assist with clients’ most critical networking, cloud migration and workplace productivity needs.
“We are thrilled to join the Xerox team and eager to contribute to the growth of Xerox IT Services,” said Munu Gandhi, chief executive officer at ITsavvy. “Together with Xerox, we plan to expand the portfolio of high-value services for our growing client base throughout the U.S., U.K. and Canada.”
This acquisition supports the company’s Reinvention and commitment to expand its IT Services business, while continuously bringing innovative solutions to Xerox clients’ workplaces. The acquisition is expected to be immediately accretive to adjusted earnings per share and free cash flow. Xerox management will further discuss the acquisition during its third quarter 2024 results.
This statement may contain “forward-looking statements” that reflect Xerox’s beliefs, assumptions, and expectations concerning matters that are in the future and are uncertain. For a list of factors that may cause actual results to differ from our expectations, please click here.
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About Xerox Holdings Corporation
For more than 100 years, Xerox has continually redefined the workplace experience. Harnessing our leadership position in office and production print technology, we’ve expanded into software and services to sustainably power the hybrid workplace of today and tomorrow. Today, Xerox is continuing its legacy of innovation to deliver client-centric and digitally driven technology solutions and meet the needs of today’s global, distributed workforce. From the office to industrial environments, our differentiated business and technology offerings and financial services are essential workplace technology solutions that drive success for our clients.
