Xerox 2011 Annual Report Download - page 16

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14
Our Business
Acquisitions
Consistent with our strategy to expand our Services offerings through
“tuck-in” acquisitions, we acquired the following companies in 2011:
• In April 2011, we acquired Unamic/HCN, the largest privately
owned customer care provider in the Benelux region in Western
Europe. Unamic/HCN’s focus on the Dutch-speaking market expands
our customer care capabilities in the Netherlands, Belgium, Turkey
and Suriname.
• In May 2011, we acquired NewField IT, a U.K.-based print consultancy
and software solution provider. This acquisition expanded our market-
leading managed print services portfolio. NewField’s consulting and
software services help companies implement MPS more quickly. Its
software suite creates visual maps of a floor plan to show how printers
are used throughout an office. By combining this mapping with a
database that tracks usage patterns of document devices, workplaces
small to large are better able to monitor and manage the use of the
devices and their overall print-related costs.
• In July 2011, we acquired Education and Sales Marketing, LLC
(“ESM”), a leading provider of outsourced enrollment management
and student loan default solutions. The acquisition of ESM enables us
to offer a broader range of financial services to assist post-secondary
schools in attracting and retaining the most qualified students, while
reducing accreditation risk.
• In November 2011, we acquired The Breakaway Group, a cloud-based
service provider that helps healthcare professionals accelerate their
adoption of Electronic Medical Records (“EMR”). The Denver-based
firm’s technology allows caregivers to practice using an EMR without
jeopardizing real patient data. This acquisition expands our services for
healthcare providers.
• We also completed additional Services acquisitions in the areas of
Healthcare Provider, Customer Care and Financial Services in 2011,
increasing our presence in the United States and in Europe.
Additionally in 2011, we made acquisitions consistent with our strategy
to expand distribution of Xerox technology to under-penetrated markets:
• In February 2011, we acquired Concept Group, Ltd. This acquisition
broadens our reach into the small and midsize business market in
the U.K. Concept Group has nine locations throughout the U.K. and
provides document imaging solutions and technical services to more
than 3,000 customers.
• In April and May 2011, we acquired Premier Office Equipment,
Inc. and Midwest Business Solutions, both based in Iowa. And, in
December 2011, we acquired the Merizon Group Incorporated, which
operates MBM, a Wisconsin-based office products distributor. These
acquisitions further our strategy of creating a U.S. nationwide network
of locally based providers focused on improving document workflow
and office efficiency for small and midsize businesses.
• In addition, throughout 2011, we enhanced our distribution by
acquiring office products distributors in New York, Illinois, Virginia
and Florida.
We use our core strengths and market opportunities to grow our
businesses by executing on the following growth drivers:
• Services-Led – We provide the most diverse set of business service
offerings in the industry, delivering value through operational
excellence and applying innovation to drive process automation.
We are the industry leader in Document Outsourcing and continue
to strengthen this leadership by expanding our Managed Print
Services (“MPS”) for businesses small to large. In total, our services
business represents significant growth opportunity for the company,
and our investments align with actively pursuing this growth. In 2011,
Services represented the largest portion of our business, at 48 percent
of total revenue.
• Global Expansion – We continue to use the benefit of our global
presence to expand our business process and IT outsourcing offerings
beyond the U.S. In addition, the strength of our brand and global
footprint position us well to penetrate more of the small and midsize
business (“SMB”) opportunity, especially in developing markets.
•
Grow High-Value Pages – We will maintain our lead in technology
and document outsourcing by growing “high-value” pages – those
produced in color and/or featuring customized content. We have the
broadest portfolio of color printing technology in the industry to help
customers realize the communication benefits of printing in color. Cost
and quality improvements are driving the transition from black-and-
white to color. With only 27 percent of Xerox pages printed on color
devices, we believe there remains tremendous opportunity to grow
color pages and associated revenue. We continue to create new market
opportunities for digital printing through technology that enables
personalized promotional and transactional documents, short-run
book publishing, cross-media customized campaigns and more.