Small, tuck-in acquisitions and a growing services business will boost revenue and profit margins for Norwalk's Xerox Corp., which is in the midst of trying to shed its stodgy image as a printer and copier company, its chief executive tells Reuters.
Ursula Burns, a mechanical engineer by training who was named CEO in July 2009, said Xerox earmarked between $350 million and $400 million for acquisitions such as companies with specialty analytic capabilities or healthcare technologies, Reuters reports.
Burns ruled out any major purchases comparable to its buy of Affiliated Computer Services Inc (ACS) for $5.5 billion in 2009, which moved Xerox into the outsourcing business in what was the company's biggest deal in its 106-year history.
The move was viewed as a strategic gamble and despite growth in the services business, Xerox has been at pains to prove it was a smart step similar to IBM's acquisition of consulting firm PricewaterhouseCoopers (PWC) in 2002.
"We spend a lot of time thinking about IBM, studying them" Burns said, adding that it took IBM a number of years until it sunk in that the company did much more than sell mainframes after it bought PWC and that it would take Xerox some time as well.
"I'm wildly impatient about most things in the world. I'm slightly more patient about this," Burns said.
Xerox derives more than half its revenue from its services segment which includes processing credit card applications, managing toll systems and unemployment benefit provisions for states.