Xerox, a multinational document management company, has announced an agreement to sell its Information Technology Outsourcing (ITO) business to Atos, an international IT services company, for $1.05 billion prior to closing adjustments.

The deal includes an additional consideration of $50 million subject to the condition of certain assets at closing, said a statement by the company.

The transaction is subject to customary closing conditions and regulatory approval and is expected to close in the first half of 2015, it stated.

Xeror said the transaction will enable new levels of strategic collaboration in client situations and innovative solutions leveraging Atos’ world-class ITO capabilities and highlighting Xerox’s business process outsourcing (BPO) and document outsourcing expertise.   

Xerox’s ITO business includes approximately 9,800 ITO employees in 45 countries, with 4,500 in the US and more than 3,800 in global delivery countries.

As per the new agreement the Xerox ITO leadership team will join Atos.

Xerox’s existing ITO clients will gain access to Atos’ global IT services capabilities and a broad range of services.

Also under the terms of this transaction, Atos will provide IT services to Xerox.

As a result of the pending sale of the ITO business, Xerox expects to report this business as a discontinued operation.

For the entire year of 2014, this represents an estimated net $1.3 billion in third-party services segment revenue and an estimated $115 million in services segment profit.

With this change, Xerox now expects full-year 2014 GAAP earnings per share from continuing operations of $0.87 - $0.89 and full-year 2014 adjusted earnings per share of $1.04 - $1.06, said a statement.- TradeArabia News Service