Is this True??? Xerox buys Global??

Xerox To Buy Global Imaging For $29 Per Share
Acquisition increases Xerox's U.S. distribution to SMB customers by 50 percent; 1,400 more 'feet on the street' serving 200,000 new customers.

STAMFORD, CT, 02 April 2007 - Xerox Corporation (NYSE: XRX) and Global Imaging Systems, Inc. (NASDAQ: GISX) 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.

21 Offices Focused on SMB Market
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.

$1 Billion Annual Sales
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."

Strong Growth
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."

Global will over time add the full range of Xerox office and production products and supplies, including all Phaser™ and WorkCentre™ printers and multifunction systems that print, copy, fax and scan, as well as Xerox Nuvera™ and DocuColor™ digital presses.

Execution Cited by IDC
A recent report by industry research firm IDC cited Global for the success of its business model and growth strategy. "Global Imaging has continued to execute on a carefully planned growth strategy over the last couple of years," according to IDC analyst Keith Kmetz. "Global is relentless about focusing on service, chooses its acquisitions very carefully and has chosen a target market (mid-market companies) that is advantageous...Global has shown it can grow not only through acquisitions but also through effective management of existing businesses."

Once the transaction is complete, Global Imaging will operate as a wholly owned subsidiary of Xerox. Tom Johnson and Michael Shea, president and chief operating officer of Global, will continue to lead the company, reporting directly to Jim Firestone, president, Xerox North America. They will work in tandem with Xerox's North American Partners Group to align with Xerox's other SMB distribution channels. The acquisition of Global builds on Xerox's announcement earlier this year to increase its investments in sales channels by providing a broader array of offerings and revenue growth opportunities to value-added resellers and independent agents.

Global Imaging will keep its headquarters in Tampa, Fla. Its 4,500 employees will continue to operate as part of Global in the company's 21 regional core companies.

Deal to Close in May
Expected to close in May, this acquisition is Xerox's third in the past year. In July 2006, Xerox closed on the $175 million cash acquisition of Amici LLC, a provider of electronic-discovery services that support litigation and regulatory compliance. Xerox acquired XMPie for $54 million in November of last year. XMPie is the leading provider of software for personalized, multimedia marketing campaigns.

The acquisition of Global Imaging Systems is subject to customary closing conditions, including the tender of at least a majority of the shares of Global common stock and receipt of clearance under the Hart-Scott-Rodino Antitrust Improvements Act. The transaction has been structured as a two-step acquisition including a cash tender offer for all outstanding shares of Global common stock followed by a cash merger in which Xerox would acquire any remaining outstanding shares of Global common stock.

Xerox expects the acquisition of Global will be accretive to Xerox's full-year 2007 earnings.

Sure paying a lot above market for these shares. Wonder where all those customers will be getting service and supplies after the acquisition? heh, heh, heh!

I've added my comment to the Xerox purchase of Ricoh on my blog, check it out and added a few cool new features for you all. mfpsolutions

The text of your email you say Ricoh where you intended to say Global. "I've added my comment to the Xerox purchase of Ricoh on my blog." Wouldn't that be scary.

yes, I may have goofed, thanx, I'll have to check it out!

Frankly I'm amazed at the lack of discussion on this announce here. Xerox and Global Imaging seems like a very powerful influence in most markets. The ramifications of this on Canon's marketing plans going forward as well as RIcoh and Konica-Minolta, Global has come into many markets and gobbled up mid-sized dealers and taken it to many smaller dealers. Where will Canon go to maintain its marketrshare? What about all those CPC Contracts? Discussion?

My DSM said she is losing $1.2 Million/month in revenue.

I personally feel that there is a reason that those customers aren't with Xerox to begin with and unless Xerox makes major changes in the way they do business, all these customers will eventually leave.

If I had the money, I would start a dealership in a current Global hotspot and target the customer-base.

I know that Ricoh is already looking at switching RMAP accounts to other RBS or other dealers for service.

Same here! Maybe a few of the big "players" that were with Global will start some new dealerships, hire away the global people and attack the new Xerox base.

I would have to admit after years of selling against Xerox and then having to sell Xerox would be quit a pill to swallow.

Personally, of everyone who "could" have bought Global, I'm sure glad it's Xerox. I can't think of anyone who handles the market they are trying to re-penetrate worse than they do.

Good Point!

Stop the presses!!!!
Canon cancels Global for violating their contract by selling to Xerox.... From now on they can only purchase parts and supplies.
Will Ricoh do the same? What about Konica? Although they might not be able to afford to do that.
Interesting times we live in, don't you agree?

Do you have a press release on this or any paper work, please advise, time to start attacking global accounts in my area NOW!!

Hmmmm, maybe Xerox feels a threat from the Edgeline technology of H-P and feels in order to continue to compete it needs a solid entry into that part of the merket. Could H-P be looking at someone to help solidify their position in the Segement 1-2 and build a position in segments 3, 4 and 5? Someone like IKON? H-P will have invested $1.5 BILLION in the Edgeline technology so what's a few more BILLION BUCK to ensure its success? Boy, would Canon go CRAZY then.

We’ll here is what I’ve heard and some of what you might already anticipate.

Within 3-6 months all of the Global dealerships will sell Xerox. This impacts all independent Xerox distributors in our marketplaces. In our case the Global dealer is dual line Canon and Lanier.

I do not expect Canon, RFG, and possible KM to sign off on the sale, which means they will be seeking new representation in each Global marketplace. If anyone signs off, it will be KM because they have the most to loose and will hang on as the second line of a multi-line dealer.

With HP Edgeline opening 200 dealers this year and the shuffle with the global guys, 2007 will defiantly be a year of change. Look for a lot of displaced people seeking quality homes in the independent distribution channel.

If you have some money, good time to become a dealer???

I hear KM struck such a 'Deal'

Ricoh Dumps Global Imaging
By Shelley Solheim, VARBusiness
11:24 AM EDT Fri. May. 25, 2007 Just one week after Xerox completed its $1.5 billion acquisition of Global Imaging Systems, Xerox rival Ricoh said that it is terminating its relationship with Global Imaging.
The move, while not surprising, raises questions for some of the 200,000 small-to-midsize businesses that Global serves across the United States, as well as the thousands of local dealers and VARs that compete with Global's 21 core regional companies that sell and service printers, copiers and other document management systems.

As of May 31, all Ricoh contracts with Global are null and void, and the vendor will no longer recognize Global as an authorized dealer for its Ricoh, Savin and Gestetner brands, says Ricoh spokesman Russell Marchetta. Ricoh will still resell Global supplies and parts for three years, as per a contractual agreement, but it will not allow Global to resell its machines, Marchetta says.

A bigger question, though, remains around what will happen for Global's multiyear state and local government contracts. Ricoh says it will take over accounts it owns that were serviced by Global either through its direct arm, Ricoh Business Solutions, or by assigning it to another dealer. However, for contracts that Global Imaging owns, Global dealers will not be able to resell Ricoh products going forward.

Xerox, for its part, says its working to make the transition as easy as possible for customers.

"The leadership team at Global Imaging Systems is working closely with all current suppliers to ensure that customer needs continue to be met now and in the long term. We are aware of Ricoh's recent decision and are actively engaged in discussions regarding transition plans," says Jim Firestone, president of Xerox North America, in an e-mail. "Our intent and commitment is to continue to provide all customers -- including small and midsize businesses, government agencies and others -- with the equipment, supplies and support they require."

Global had other existing relationships with copier and printer companies before it was acquired by Xerox, including Sharp Electronics and Konica Minolta.

Sharp will continue to sell Global products through at least April of 2008, as per its contractual agreement with Global. Konica Minolta executives could not be immediately reached.