Back to top

Analyst Blog

After acquiring the e-discovery services firm Lateral Data, earlier this month, Xerox Corporation (XRX - Analyst Report) has now entered into a definitive agreement to purchase UK-based WDS. The terms of the deal were not disclosed.

WDS counts large telecommunication companies among its clients, and provides them with technical support, knowledge management and associated consulting services. It employs more than 2,000 people in the U.S., UK, South Africa, Singapore, Australia and New Zealand.

GlobalMine, WDS’ proprietary cloud-based platform, captures, analyzes and handles millions of technical support queries spread across a diverse range of mobile devices. WDS uses this data to assist clients in resolving service or device related problems faced by their users.

WDS will be a healthy addition to Xerox’s customer care solutions portfolio. Xerox currently employs over 48,000 people across 150 locations for providing customer care solutions and manages above a million interactions through the phone and the web daily.

The WDS acquisition, along with strengthening Xerox’s position in the industry, will add illustrious telecom companies to the company’s client base. Further, WDS’ expertise and experience in technical support services would positively contribute to Xerox’s offerings.

Xerox has been pretty active over the last two months, signing new deals and making acquisitions. The company’s first-quarter 2012 earnings of 23 cents a share surpassed the Zacks Consensus Estimate by a penny. Its revenues grew just 1% year over year in the quarter.

Xerox has underperformed the S&P 500 so far this year. Through these acquisitions and new deals, the company will look to expand its top line and deliver better value to shareholders.

We currently have a long-term Neutral recommendation on Xerox. The company, which competes with Canon, Inc. (CAJ - Snapshot Report) and Hewlett-Packard Company (HPQ - Analyst Report), maintains a Zacks #3 Rank, which translates into a short-term (1 to 3 months) Hold rating.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
CHINA BIOLO… CBPO 47.40 +2.20%
MALLINCKROD… MNK 72.34 +2.00%
SOUTHWEST A… LUV 31.84 +1.92%
PLANAR SYST… PLNR 4.30 +1.78%
GILEAD SCIE… GILD 103.94 +1.63%