Xerox remains on the acquisition trail despite putting its bid to buy HP on ice during the Covid-19 outbreak.
The US company has purchased two UK distributors ITEC and Alltodigital to add to Arena which it bought earlier this year. ITEC has its head office in Bristol and owns MailaDoc, which late last year was the first UK company to install the Xerox Baltoro cutsheet inkjet press.
MailaDoc offers hybrid mail and production services to a range of ITEC’s corporate level clients across a number of industries complementing the managed print, IT, business communications and cloud technologies that are the core business.
Managed print is part of this offering, working with Ricoh, Canon, HP, Kyocera and Xerox, as part of what it has called a “vendor neutral approach”. ITEC technology will manage the flow of print to the most appropriate device. It will now become “ITEC, a Xerox company”.
To date, ITEC’s growth has been through venture funding, as over ten years it has grown from £4 million in revenue to £50 million in revenue.
Nick Orme, ITEC CEO, says :”As soon as it became clear that our private equity investors wanted to find a buyer, Xerox was always the management team’s first choice.
“We wanted our next owners to not only share our passion for technology, but have the resources and determination to continue driving our growth in the small to medium business (SMB) space. Xerox’s investment in the business will take us to new levels of capability.”
There is interest in some of the areas that Xerox is developing including 3D print, printable sensors, and digital packaging. These are areas that ITEC sees as the future for its customers.
The second acquisition is Alltodigital, one of the largest independent providers of office equipment, systems technology and print to smaller businesses. It too has been a supplier of print devices from Ricoh, Kyocera, HP and Canon as well as Lexmark and Sharp. The company has 450 staff operating from a network of 12 offices linked to the head office in the West Midlands.
James Abrahart, CEO and owner of Altodigital, says: “Altodigital is joining Xerox on its incredible journey as it undergoes a digital first transformation and invests in customer focused innovation. We share Xerox’s vision to broaden the range of services and technologies available to SMBs requiring a modern work experience.” It becomes “Altodigital, a Xerox company”.
The acquisitions have received government approval and continue Xerox's strategy of taking ownership of its distribution channels, which has been underway in the US for more than a year. Xavier Heiss, EVP and president of EMEA operations for Xerox, says: “Xerox’s strategy is to grow in the small and midsize business market through the combined power of a strong portfolio of workplace solutions for SMBs and well established local technology providers.
“ITEC and Alto are both leaders in managed print services and specialists in IT services, an area Xerox is rapidly expanding into with its IT Services for SMBs offering.”