NEW YORK (TheStreet) -- Shares of Xerox Corp. (XRX) are up 3.96% to $14.44 in pre-market trade after the services and technology company said it was selling its Information Technology Outsourcing (ITO) business to Atos for $1.05 billion prior to closing adjustments, with additional consideration of $50 million subject to the condition of certain assets at closing.
The transaction is expected to close in the first half of 2015.
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 U.S. and more than 3,800 in global delivery countries. 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.
TheStreet Ratings team rates XEROX CORP as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate XEROX CORP (XRX) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its attractive valuation levels, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."