Xerox acquires Canadian IT services provider Powerland
Xerox is a popular name for print media, and their latest acquisition of IT service provider Powerland will now serve more customers in one place. The company places its foot in the shoe of a leading technology solution provider and the printing business in the North American market. SMB clients can now come to Xerox and find a simple platform for IT needs and printing.
President of Xerox Canada, Martin Bachant, said: "The acquisition accelerates our position as a key technology solutions provider in the North American market." We are unclear on the financial terms as Xerox did not disclose them. But according to our research, it is one of the expensive acquisitions by the company. Powerland has all the tools modern solution providers market. From data cloud to hybrid cloud, cyber security, end-user computing, and plenty more. The efficient IT system will boost clients' performance and give Xerox an upper hand.
Xerox Holdings Corporation (NASDAQ: XRX), with the Powerland acquisition, is targeting a vast array of products from managed services space. Powerland's recent achievement was 2021 industry accolades and Nvidia Partner of the Year. Dell Marketing Partner of the Year North America, Tech Delta Circle of Excellence, and HPE Services Partner of the Year.
Martin said, "Today, the ability to quickly adapt to change and remain competitive requires a strong IT partner." Also, "Combining the talented teams of Powerland and Xerox IT Service provides a greater value proposition for customers with support, information, security expertise, and technology solutions from major IT manufactures."
While world-class innovator like Xerox looks forward to enhancing business capabilities and technology transformations, many competitors seem to awe the movement as it just moved a step ahead. Powerland's executive VP Curtis Dery said, "We are thrilled to join a world-class innovator like Xerox and look forward to enhancing business outcomes and technology transformation for our clients across Canada."
Xerox has been an ideal business model for more than a century. Their redefined workspace harnessing leadership positions in print technology is pretty innovative, and the acquisition certainly boosted the vibe.
Powerland started its business in 1985, and since then, it has only moved ahead with ongoing IT support business. After the acquisition, Powerland added "A Xerox Business Solutions company" to the branding.
2021 fourth-quarter revenue for Xerox was $1.78 billion, down by 7.9 per cent year-over-year. According to fiscal year revenue, $7.04 billion made it to the revenue sheet. Per-share on the budgetary year GAAP was $3.97 and $2.56, y-o-y down by $4.33 and $3.40. It is not a notable acquisition of Xerox. In fact, in October 2021, Competitive Computing (C2) was bought out by Xerox. C2 is a Vermont-based IT services company. ITEC Connect, a UK-based IT services firm, and Digitex, another IT services provider from Canada, were bought by C2 in 2020.
Norwalk reported the progression of SMBs that IT support infrastructure is spending more on cloud infrastructure, Managed Services, and cyber security. Bachant talked about the expansion of IT services capabilities "our partners can now work with our existing print customers to provide them with new technologies offerings to transform their business." Xerox's acquisition of ITEC Connect and Digitex boosted their ego on going all out on the purchase. At the moment, $680 billion is the current annual billing of the IT services market.
The current market trend says it doesn't matter how many or which services you offer; attaching yourself with an IT service portfolio along with cloud services is much needed. We've seen the need tech market, which market leaders rapidly fill.
Executive VP, chief commercial and SMB channel officer at Xerox, Joanne Collins, said, "This is part of what we're doing to address the need that's out there for technology support. We are going to be very focused on security and protecting them. We think we have a winning solution here with our new IT services offering." So, the follow-up is not a new thing but has been practised throughout the years.