WDS deal strengthens Xerox's wireless industry customer experience management
Jul 12, 2012 (The Stamford Advocate - McClatchy-Tribune Information Services via COMTEX) --
Less than a month after buying a Houston-based e-discovery technology provider, Norwalk-based Xerox Corp., has agreed to acquire WDS, a Great Britain-based firm that provides technical support, knowledge management and related consulting to global wireless telecommunication brands.
WDS uses a proprietary cloud-based platform called GlobalMine to manage millions of technical support interactions across mobile devices. WDS uses this data to help clients quickly adjust to systemic issues or customer experience problems with their devices or service.
Based in Poole, England, WDS has more than 1,500 employees in the United States, United Kingdom, South Africa, Singapore, Australia and New Zealand.
"WDS's expertise in the telecommunications industry strengthens Xerox's already broad portfolio of customer care solutions -- differentiating us as a trusted partner for a rapidly evolving industry that requires reliable, accessible and scalable ways to support the complexity of their consumers' needs," said Chris Tranquill, president of the Xerox Telecommunications and Technology group.
Through its more than 48,000 call center employees who support clients in 150 locations, Xerox handles more than 1 million consumer interactions a day through the phone and Web.
Founded in 1995, WDS is led by Chief Executive Officer David Ffoulkes-Jones, who will continue with the company.
"With Xerox, we now have the ability to accelerate our global expansion, add more value to our customers and deliver greater opportunities to our employees," Ffoulkes-Jones said in prepared comments.
Xerox did not disclose the purchase price, but it has cash to make deals, said Ed Mullane, dealReporter's associate editor -- technology media and telecom.
"While funding may be an issue for some companies that need to tap into capital markets, Xerox has been able to generate enough cash to fund its M&A efforts in-house," he said.
Xerox, which has sales approaching $23 billion, reported first-quarter net income of $269 million in April, a 4.3 percent decline from the same period the previous year, but it beat analysts' estimates.
"It is difficult to figure out if Xerox is reporting light revenue because of a sluggish economy or because of changes in technology," Mullane said.
Xerox, which built its international reputation on printers and copiers and has 140,000 employees in more than 160 countries, is diversifying its offerings, he said.
"Xerox's big move away from the printing business was its acquisition of ACS (in 2010), a business process outsourcer," Mullane said. "Since the transaction, Xerox's stock has generally been weak. Investors have not fully embraced the company following the merger. Xerox has to show growth to get investors interested in the company."
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