DALLAS: Affiliated Computer Services (ACS) has been aided by its AOR, Brunswick Group, in its $6.4 billion deal to be acquired by Xerox Corporation, announced on September 28.
According to Kevin Lightfoot, VP of corporate communications at ACS, the company has had a three year relationship with Brunswick, which has been “intimately involved” with ACS.
“We're relying on them for some strategic work, but also boiling down and churning out the questions and answers, the documents,” and other information to reach the company's stakeholders, which include the media, clients, employees, and vendors, said Lightfoot.
It's too early to determine how the company's relationship with Brunswick will evolve once the deal is complete, Lightfoot continued. The transaction is expected to close in Q1 2010, and ACS will be branded as ACS, a Xerox Company thereafter.
He went on to say that ACS, a company that provides business process outsourcing support, had a “record” year in fiscal 2009 (the company reported $6.52 billion in annual revenues), which is part of the acquisition messaging.
“Our business process management solutions are going to contribute to the growth of Xerox,” said Lightfoot, who said the benefits of the deal are “reciprocal.”
“This whole announcement was about growth,” he added.
As M&A deals continue to be scarce during the downturn, any activity means heightened attention for the parties involved, and this acquisition is no exception. Lightfoot noted the need for increased sensitivity around it.
“There's a new dynamic going on in M&A deals,” he said. “You have to be careful and think it through properly.”
“Any big move in this market is not without risk, which is why you have to communicate out the gate, but you also have to keep doing it,” said Michael Buckley, partner at Brunswick in the firm's San Francisco office. Brunswick's New York and Washington teams are also involved in the deal, according to Buckley.
“Particularly on strategic transactions in this economy, it requires extreme diligence in terms of explaining the rationale for the deal," he added. "You announce and you keep explaining to all audiences relentlessly.”