NEW YORK (TheStreet) -- Xerox (XRX) shares closed trading up 0.97% to $11.48 on Monday after the business process and document management solutions provider announced that it was purchasing Health Communities Institute for an undisclosed sum today.
Health Communities Institute is a Berkley,CA-based cloud platform company that allows its clients quick search capabilities of patients' socioeconomic and healthcare information.
"The Affordable Care Act and demand for improved quality of care are factors driving opportunities for Xerox, and population-based insights are critical as the healthcare system shifts to a value-based model," said Senior VP of of Xerox subsidiary Midas, Justin Lanning. "With this acquisition, we are enriching our healthcare business, evolving our offerings and innovating to address market changes. Our clients will be able to identify at-risk populations, which will lead to timelier and more personalized clinical interventions. This can reduce costs and improve care."
TheStreet Ratings team rates XEROX CORP as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate XEROX CORP (XRX) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its reasonable valuation levels, largely solid financial position with reasonable debt levels by most measures, expanding profit margins and notable return on equity. We feel its strengths outweigh the fact that the company has had sub par growth in net income."