THE CUTTING EDGE/TECHNOLOGY NEWS : MORE ON TECH : Xerox to Buy Tektronix’s Printer Unit for $950 Million
Xerox Corp. agreed to buy the printing division of Tektronix Inc. for $950 million in cash to add network color printers and compete better with Hewlett-Packard Co., the No. 1 maker of printers. The Tektronix printing business employs 2,400 and had sales of about $750 million in the fiscal year that ended in May. No job cuts are planned, Xerox Chief Executive G. Richard Thoman said. It’s the latest move by Xerox in its battle for dominance in the copier and printer markets, which are gradually converging as technology enables one machine to do many tasks. The Tektronix business would instantly give Xerox the No. 2 spot in color printers, a market Thoman expects will grow from a current $2 billion to $6 billion in the next several years. Thoman said he expects the acquisition won’t affect per-share earnings either way in 2000 and will add slightly to earnings after then. The Tektronix business would continue to operate in the Portland suburb of Wilsonville, Ore., after the purchase. The transaction is expected to close in 60 days. Shares in Stamford, Conn.-based Xerox rose 56 cents to close at $42.56; Tektronix rose $1.31 to close at $36.19. Both trade on the New York Stock Exchange.
