A unit of Xerox Corp. said Tuesday, May 25, that it is buying a benefits and human resources outsourcing unit from Hewlett-Packard Co. for $125 million.
A spokesman for Dallas-based Affiliated Computer Services Inc. said its purchase of ExcellerateHRO is expected to close this summer.
“This acquisition clearly demonstrates Xerox’s commitment to invest in human resources that will ultimately benefit all our clients,” Ann Vezina, ACS executive vice president and group president of ACS Human Resources Services, said in a statement.
ExcellerateHRO, which does not disclose revenue, currently has 350 to 400 clients and about 1,800 employees.
The benefits and HR outsourcing operation was formed in 2005 by then-Towers Perrin and EDS Corp., combining Towers Perrin’s benefit administration services and EDS’ payroll and HR-related outsourcing services. EDS held a roughly 85 percent share in ExcellerateHRO, and Towers Perrin owned the rest.
In 2008, HP acquired EDS and its interest in ExcellerateHRO.
In June 2009, Towers Perrin, which merged this year with Watson Wyatt Worldwide to form Towers Watson, sold its minority share to HP.
ACS’ purchase of ExcellerateHRO is its first since Xerox acquired it in February in a deal valued at $6.4 billion.
Filed by Jerry Geisel of Business Insurance, a sister publication of Workforce Management. To comment, e-mail editors@workforce.com.
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