Xerox Holdings Corp. (XRX), a provider of printing and digital document products and services, completed the acquisition of Competitive Computing (C2), an information technology (IT) services provider. The acquisition is in line with Xerox’s target of expanding its IT services business. Shares jumped 1.3% on the news, closing at $21.09 on October 5.
Competitive Computing is a technology consulting firm for eBusiness, Cloud Infrastructure, and Managed Services and has been serving businesses, educational, and governmental institutions successfully for the past 28 years. For the past two years, C2 has been recognized “Best of Business” for IT services in Vermont, and has clients across New England and the United States. C2 will join Xerox’s IT services team and expand its portfolio of IT and business services to its existing client base.
Additionally, the acquisition expands Xerox’s IT solution offerings for the global IT services market valued at more than $350 billion annually. (See Xerox stock charts on TipRanks)
Commenting on the deal, Joanne Collins Smee, chief commercial, SMB, and channels officer at Xerox said, “We’re focused on expanding the reach of Xerox IT services to offer our clients automation, digitization, and security to lower operating costs, increase reliability and improve productivity.”
Smee added, “C2’s capabilities and scale will help accelerate our growth, creating new avenues for us to support growth for small and medium-sized businesses.”
Recently, Morgan Stanley analyst Kathryn Huberty initiated coverage of the stock with a Sell rating and price target of $17, implying 19.4% downside potential to current levels.
Overall, the stock has a Moderate Sell consensus rating based on 1 Hold and 2 Sells. The average Xerox price target of $18.33 implies 13.1% downside potential to current levels. Shares have gained 7% over the past year.