NEW YORK (AP) ¿ Kaufman Bros. analyst Shaw Wu doesn't think the combination of Xerox Corp. and Affiliated Computer Services Inc. will be much of a competitive threat against Hewlett-Packard Co.

Xerox agreed to buy ACS on Monday for about $6.4 billion in cash and stock. The deal came a week after Dell Inc. said it would buy Perot Systems Corp. for $3.9 billion and a year after HP snapped up Electronic Data Systems Corp. for $13.9 billion.

Wu, who rates HP "Buy," said he does not think the "competitive landscape changes much as neither company, as a standalone, was very effective against HP and we are not sure if coming together would change things."

Xerox said the acquisition will combine its copiers, printers and document management services with ACS's business process outsourcing services. Such services help companies manage payrolls or run health care plans, for example. This way, Xerox can expand its role in helping its customers run their businesses.

Wu said it's not clear how much Xerox can get ACS to become more competitive in the printer space, where HP is a leader.

"Moreover, Xerox's efforts in printers have been mixed despite its strong position in office copiers," the analyst wrote, adding that this is because the buyers of copiers in a company is often different from the buyer of printers.

"Copiers are typically managed by facilities personnel who are also responsible for office supplies and the water cooler, whereas printers are procured and managed by the IT department," the analyst wrote.

Wu raised his target price on HP to $54 from $50.

Shares of the Palo Alto, Calif.-based company fell 29 cents to $47.59 in afternoon trading.

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