Thread regarding Xerox Corp. layoffs

Staples acquires Dex Imaging (Why not GIS?)

Hmmm, the same day we receive the email from Feldman that Xerox has signed a 5-year deal with Office Depot to provide thousands of machines worth hundreds of Millions of dollars to Office Depot the news comes out that STAPLES has acquired the second largest independent office equipment dealer in the US - Dex Imaging (2nd to POA - Pacific Office Automation). Based in the Southeast, Dex has 40+ locations. Dex is Konica Minolta 2nd largest dealer and also sells Canon, Kyocera, and Kip equipment. This means Staples outbid KM and Canon, as they had to be in the negotiations!

Who would have thought Staples would be a potential buyer for a large SMB office equipment dealership, with a plan to "infuse cash into Dex with intentions of expanding nationwide".

Hmmm, where else could Staples have gone to acquire a nationwide sales organization in the SMB office space, vs purchasing a regional dealership as a foundation to building a national presence?

Oh right, XBS/GIS! Staples and Xerox have a relationship that spans decades, so we must assume that the option to purchase GIS/Xerox was on the table, but I'm assuming Xerox didn't want to split the baby (wasn't going to sell the good --> GIS, without selling the bad --> Legacy Xerox).

BUT, now that Staples has made a play, this now opens the door for Office Depot to be a potential suitor for Xerox!

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Post ID: @XzQDeZm

2 replies (most recent on top)

Staples is a private company.

Office Depot/Max is a public company.

I doubt either could afford GIS.

If Xerox Sold GIS it would hurt revenue and profitability so much that Icahn's shares would drop in value. I think investors these days are wise to companies that sell their golden goose for one time windfalls.

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Post ID: @XzQDeZm-2ekw

Dex Imaging was valued at $205 million..

GIS bring in $2 BILLION.

Not quite in the same ball park..

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Post ID: @XzQDeZm-1pvo

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