STAMFORD, Conn. (AP) -- Xerox Corp. has reached an agreement to purchase the color printing division of Tektronix Inc. for $950 million in a deal that will make Xerox second only to Hewlett-Packard in the office color printing market.
Xerox officials said today the acquisition will allow it to compete more effectively with Hewlett-Packard because it will combine the color-printing technologies of the Oregon-based Tektronix with Xerox's black-and-white workgroup printers.The purchase, which would be the largest ever for Xerox, is expected to close within 60 days. The deal is subject to regulatory approval.
"This executes another in a series of strategic moves signaling to the market that Xerox has the resolve, the focus, the determination and the resources to aggressively compete -- and win," Xerox president and chief executive Rick Thoman said in a prepared statement.
On the news, Tektronix stock shot up 7 percent this morning on the New York Stock Exchange, rising $2.43 3/4 to $37,31 1/4 a share. Xerox slipped 68 3/4 cents to $41.31 1/4 a share.
The deal will give Xerox the Tektronix's line of Phaser color laser and solid ink printers, which last year logged nearly $725 million in sales. Xerox's distribution capacity will nearly double to more than 16,000 resellers and dealers worldwide.
Xerox said the combined business will hold more than 30 percent of the rapidly growing market for office color printing.
Tektronix's printing division, with approximately 2,400 employees, is based in the Portland suburb of Wilsonville, Ore.
Tektronix, Inc. has a portfolio of measurement, color printing and video and networking businesses. The company had revenues of approximately $1.9 billion in its last fiscal year.
Xerox Corp., based in Stamford, is the leading maker of document copying equipment.