Xerox, the global copier and imaging giant, will pay $6.4 billion to acquire the outsourcing company Affiliated Computer Services, expanding its foothold in a growing industry, the companies said.
Xerox, based in Norwalk, Conn, is paying $63.11 a share in cash and stock for ACS, which posted revenue growth of 6% and new business signings of $1 billion in annual recurring revenue during its fiscal 2009.
“We’re creating a new class of solution provider,” Xerox’s chief executive, Ursula M Burns, said in a statement, adding that the deal was “a gamechanger for Xerox.” She estimated the company’s revenue from services would triple to $10 billion next year from $3.5 billion in 2008. Lynn R Blodgett, ACS’s chief executive, said in the statement that the deal was necessary “to expand globally and differentiate our offerings through technology.” ACS will continue to operate as an independent organization. Blodgett will remain as chief executive, reporting to Burns.
It was the first major deal for Burns, who took over Xerox in July with the retirement of Anne M Mulcahy.
Owners of ACS stock will receive $18.60 a share in cash and 4.935 Xerox shares for each ACS share. Xerox will assume $2 billion in ACS debt and issue $300 million of convertible preferred stock to ACS’s Class B shareholders. ACS had a market value Friday at the close of trading of $4.6 billion. Xerox said the transaction would add to profit in the first year on an adjusted-earnings basis.
ACS, based in Dallas, specializes in outsourcing processes for industries including telecommunications, retail and financial services and health care, and describes itself as the largest provider of managed services to government entities in the United States. The companies estimated the market for so-called business process outsourcing at $150 billion, growing at a rate of 5% a year.
JP Morgan Chase and Blackstone Advisory Partners acted as financial adviser to Xerox, while Citigroup Global Markets served as financial adviser to ACS
Agencies
Tuesday, September 29, 2009
Monday, September 28, 2009
IT SEZ from realty firm in Ahmedabad
A city based realty developer Calica Construction and Impex pvt Ltd laid the foundation stone for an It and ITeS Special Economic Zone here on Sunday.
The SEZ will be spread over 20 acres of land on the outskirts of the city and would house small and medium sized information technology companies.
The developers have planned to complete the first phase of the project in two years with initial investment of Rs 300 crore while total estimated cost of the project is Rs 650 crore.
Union minister of state for small and medium enterprises Dinsha Patel and Gujarat minister of state for industry and energy Saurabh Patel were among those present at the foundation stone lying ceremony.
According to Bipin Shah, one of the developers of the new venture, the company has already got the notification from the Board of Approval (BoA) for SEZ and other clearances are in the process.
He said that over 30,000 square feet space will be created for the It and ITeS companies.
He added that they are also in the process of tying up with major IT firms to set up their centres in the SEZ which would offer world class infrastructural facilities.
Agencies
The SEZ will be spread over 20 acres of land on the outskirts of the city and would house small and medium sized information technology companies.
The developers have planned to complete the first phase of the project in two years with initial investment of Rs 300 crore while total estimated cost of the project is Rs 650 crore.
Union minister of state for small and medium enterprises Dinsha Patel and Gujarat minister of state for industry and energy Saurabh Patel were among those present at the foundation stone lying ceremony.
According to Bipin Shah, one of the developers of the new venture, the company has already got the notification from the Board of Approval (BoA) for SEZ and other clearances are in the process.
He said that over 30,000 square feet space will be created for the It and ITeS companies.
He added that they are also in the process of tying up with major IT firms to set up their centres in the SEZ which would offer world class infrastructural facilities.
Agencies
India's $100-b defence pie eyed by American miliary contractors
Eyeing India's estimated $100 billion defence pie, major U.S. arms suppliers are wooing Indian defence agents and officials as New Delhi embarks on a major military shopping spree to modernise its Soviet-era arsenal, a US media report said.
At the U.S. embassy in New Delhi, defence contractors such as Northrop Grumman are sponsoring little league baseball teams, the companies' names stitched onto the uniforms, the Washington Post said in a report from New Delhi.
Almost every weekend, there are cocktails and closed-door presentations in the suites of New Delhi's five-star hotels, hosted by retired admirals and generals from the US armed forces who now work for defence firms, such as Raytheon and Northrop Grumman, it said.
"India will look back-generations down the road-at this period as a defining moment for its new, modern military," the Post cited Roger Rose, chief executive of Lockheed Martin India, which is renting half a wing of New Delhi's Taj Palace Hotel for a 12-person office.
"I think we can all see that there are a lot of threats shared between our two democracies."
With its growing military footprint, India is steering away from traditional ally Russia, its main weapons supplier, and looking toward the United States to help upgrade its weapons systems and troop gear, the Post said
India is also pushing the Obama administration to ease the acquisition of US weapons and technology. Already this year, a high-level US government group cleared the way for Lockheed and Boeing to offer India cutting-edge radar technology for fighter jets.
India now has a shopping list that includes 126 fighter jets, 155mm howitzers, long-range maritime reconnaissance aircraft, vast cargo planes used in long-distance conflicts, high-tech helicopters and deep-water submarines. Boeing is vying with Lockheed-along with French, Russian and Swedish companies and a European consortium-for a fighter jet deal worth about $10 billion.
India is holding flight tests for the fighter jets. Lockheed and Boeing have conducted demonstration flights for Indian celebrities and defence experts.
"America's relationship to India is maturing and expanding. India is an important global player now," the Post said citing William S. Cohen, a defence secretary during the Clinton administration who is a member of the US-India Business Council's board of directors.
Agencies
At the U.S. embassy in New Delhi, defence contractors such as Northrop Grumman are sponsoring little league baseball teams, the companies' names stitched onto the uniforms, the Washington Post said in a report from New Delhi.
Almost every weekend, there are cocktails and closed-door presentations in the suites of New Delhi's five-star hotels, hosted by retired admirals and generals from the US armed forces who now work for defence firms, such as Raytheon and Northrop Grumman, it said.
"India will look back-generations down the road-at this period as a defining moment for its new, modern military," the Post cited Roger Rose, chief executive of Lockheed Martin India, which is renting half a wing of New Delhi's Taj Palace Hotel for a 12-person office.
"I think we can all see that there are a lot of threats shared between our two democracies."
With its growing military footprint, India is steering away from traditional ally Russia, its main weapons supplier, and looking toward the United States to help upgrade its weapons systems and troop gear, the Post said
India is also pushing the Obama administration to ease the acquisition of US weapons and technology. Already this year, a high-level US government group cleared the way for Lockheed and Boeing to offer India cutting-edge radar technology for fighter jets.
India now has a shopping list that includes 126 fighter jets, 155mm howitzers, long-range maritime reconnaissance aircraft, vast cargo planes used in long-distance conflicts, high-tech helicopters and deep-water submarines. Boeing is vying with Lockheed-along with French, Russian and Swedish companies and a European consortium-for a fighter jet deal worth about $10 billion.
India is holding flight tests for the fighter jets. Lockheed and Boeing have conducted demonstration flights for Indian celebrities and defence experts.
"America's relationship to India is maturing and expanding. India is an important global player now," the Post said citing William S. Cohen, a defence secretary during the Clinton administration who is a member of the US-India Business Council's board of directors.
Agencies
Can mobile phones authenticate your identity?
Move over passport and PAN card! Now the mobile phone will be used to verify your credentials, for authentication at banks, gas connection centres or while providing rural jobs, Unique Identification Authority chief Nandan Nilekani said Saturday.
"Our project will provide a unique identification (UID) number not a card. The authentication will be made by using mobile phones," Nilekani said.
"Once the numbers are issued, we will go for online authentication. Lets say, you are asking for a job under the National Rural Employment Guarantee Scheme (NREGS). The authorities will send your number to the designated points through mobile. A message will be returned saying 'Yes' or 'No'," Nilekani said.
"This will verify whether you are the person you are claiming to be," the former Infosys managing director said, delivering the Foundation Day lecture of the Council of Scientific and Industrial Research (CSIR).
"This will not require much details to be divulged. It will help provide portability to our farmers, labourers. When they move from state to state, this UID will help them get employment without hassles."
He said banks, mobile service providers, LPG gas connection counters and many more partner organisations can use this UID to verify their customer. "With the growing mobile phone network, this will become an easy process for authorities to verify people."
"It will cut down the fake or duplicate records. This will enhance the efficiency of flagship programmes like NREGS (National Rural Employment Guarantee Scheme), NRHM (National Rural Health Mission) and other such projects," Nilekani stressed.
He said his team will roll out the first batch of UIDs in the next 12 to 18 months. "In five years from now, we will issue at least 600 million UIDs," Nilekani said, terming it a Herculean task and a major challenge.
Agencies
"Our project will provide a unique identification (UID) number not a card. The authentication will be made by using mobile phones," Nilekani said.
"Once the numbers are issued, we will go for online authentication. Lets say, you are asking for a job under the National Rural Employment Guarantee Scheme (NREGS). The authorities will send your number to the designated points through mobile. A message will be returned saying 'Yes' or 'No'," Nilekani said.
"This will verify whether you are the person you are claiming to be," the former Infosys managing director said, delivering the Foundation Day lecture of the Council of Scientific and Industrial Research (CSIR).
"This will not require much details to be divulged. It will help provide portability to our farmers, labourers. When they move from state to state, this UID will help them get employment without hassles."
He said banks, mobile service providers, LPG gas connection counters and many more partner organisations can use this UID to verify their customer. "With the growing mobile phone network, this will become an easy process for authorities to verify people."
"It will cut down the fake or duplicate records. This will enhance the efficiency of flagship programmes like NREGS (National Rural Employment Guarantee Scheme), NRHM (National Rural Health Mission) and other such projects," Nilekani stressed.
He said his team will roll out the first batch of UIDs in the next 12 to 18 months. "In five years from now, we will issue at least 600 million UIDs," Nilekani said, terming it a Herculean task and a major challenge.
Agencies
Sunday, September 27, 2009
Did Microsoft loose $560 million on Windows Live?
Online services have been a financial drain for Microsoft, and the company said it has moved financial reporting for Windows Live from the Online Services Business to the Client division.
In a conference call with Wall Street analysts, Microsoft executives said Windows Live pulled in $520 million in revenue in fiscal year 2009, but posted a loss of $560 million. This is by no means a recent trend. Overall, the Online Service Business posted an operating loss of $2.2 billion during fiscal 2009, after racking up a $1.2 billion loss in fiscal 2008.
Tami Reller, Chief Financial Officer and Corporate Vice President, Windows Business Group, said Windows Live operates at a loss primarily due to data center construction costs, research and development, and sales and distribution costs.
"The investments in the data centers is one of the most significant investments in the Windows Live business, and really is a result of the large customer base and the strong competitive position that we have today across these services," said Reller.
Windows Live, which includes Hotmail, Live Messenger, and Skydrive, has more than 500 million users, and makes the bulk of its money through online advertising, according to Microsoft. As the user base grows, Microsoft will continue to invest in building out the data center infrastructure to support them, while also maintaining its investment in R&D, sales, and distribution, according to Reller.
"It is an organizational move, not new or changed investment," said Reller.
Microsoft will report its fiscal 2010 first quarter results on October 22, and Wall Street will be looking for some signs of improvement from several consecutive dismal quarters. Slowing PC and server sales have decimated Microsoft's business, and company officials have called the situation the most difficult economic environment the company has faced in its history.
Agencies
In a conference call with Wall Street analysts, Microsoft executives said Windows Live pulled in $520 million in revenue in fiscal year 2009, but posted a loss of $560 million. This is by no means a recent trend. Overall, the Online Service Business posted an operating loss of $2.2 billion during fiscal 2009, after racking up a $1.2 billion loss in fiscal 2008.
Tami Reller, Chief Financial Officer and Corporate Vice President, Windows Business Group, said Windows Live operates at a loss primarily due to data center construction costs, research and development, and sales and distribution costs.
"The investments in the data centers is one of the most significant investments in the Windows Live business, and really is a result of the large customer base and the strong competitive position that we have today across these services," said Reller.
Windows Live, which includes Hotmail, Live Messenger, and Skydrive, has more than 500 million users, and makes the bulk of its money through online advertising, according to Microsoft. As the user base grows, Microsoft will continue to invest in building out the data center infrastructure to support them, while also maintaining its investment in R&D, sales, and distribution, according to Reller.
"It is an organizational move, not new or changed investment," said Reller.
Microsoft will report its fiscal 2010 first quarter results on October 22, and Wall Street will be looking for some signs of improvement from several consecutive dismal quarters. Slowing PC and server sales have decimated Microsoft's business, and company officials have called the situation the most difficult economic environment the company has faced in its history.
Agencies
Motorola's Android system banks on Google's Web power
Struggling phone maker Motorola unveiled its first device using Google's Android system Thursday, expecting it will power features that promise easier access to hot Internet sites like Facebook and Twitter.
The phone, called Cliq, will go on sale at T-Mobile before the end of the year. Pricing info has not yet been released.
Motorola has reorganized its handset biz around Google's Android system, hoping the partnership with the Web search leader can help it win back customers.
The centerpiece of Motorola's Android development is its MOTOBLUR software, which integrates contacts, e-mails and text messages along with postings and photos from social networks by feeding content from these sources into "easy-to-manage streams."
For example, Motorola's live "Happenings" application delivers updates posted by friends automatically on multiple social sites to one place, and gives the user a choice of ways to reply to those updates instantly.
Agencies
The phone, called Cliq, will go on sale at T-Mobile before the end of the year. Pricing info has not yet been released.
Motorola has reorganized its handset biz around Google's Android system, hoping the partnership with the Web search leader can help it win back customers.
The centerpiece of Motorola's Android development is its MOTOBLUR software, which integrates contacts, e-mails and text messages along with postings and photos from social networks by feeding content from these sources into "easy-to-manage streams."
For example, Motorola's live "Happenings" application delivers updates posted by friends automatically on multiple social sites to one place, and gives the user a choice of ways to reply to those updates instantly.
Agencies
New smart card technology by 2014, says MTA
Bus and subway riders will be able to abandon the MetroCard and use debit or credit cards to ride anywhere in the city by 2014, according to the MTA.
The Metropolitan Transportation Authority for the first time set a target date for a no-swipe smart-card system to be in full use after years of studies and pilot programs.
With smart-card technology, riders simply waive or tap their credit or debit cards on readers when entering a subway station or bus.
Not having to swipe at turnstiles or dip a MetroCard into a fare box reader should speed travel and reduce MTA expenses, experts have said.
"I think it's great," Bill Henderson, executive director of the MTA's Permanent Citizens Advisory Council. "The technology is going help out the riders and the system."
The 2014 date is included in an MTA document detailing some of the major initiatives in the five-year capital plan recently approved by the authority's governing board.
If fully funded, the capital plan will allocate $220 million for a smart-card system, which also would include prepaid cards not linked to bank or credit accounts.
Agencies
The Metropolitan Transportation Authority for the first time set a target date for a no-swipe smart-card system to be in full use after years of studies and pilot programs.
With smart-card technology, riders simply waive or tap their credit or debit cards on readers when entering a subway station or bus.
Not having to swipe at turnstiles or dip a MetroCard into a fare box reader should speed travel and reduce MTA expenses, experts have said.
"I think it's great," Bill Henderson, executive director of the MTA's Permanent Citizens Advisory Council. "The technology is going help out the riders and the system."
The 2014 date is included in an MTA document detailing some of the major initiatives in the five-year capital plan recently approved by the authority's governing board.
If fully funded, the capital plan will allocate $220 million for a smart-card system, which also would include prepaid cards not linked to bank or credit accounts.
Agencies
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