Xerox Corp. (NYSE: XRS) announced on Monday that it would buy Global Imaging Systems (Nasdaq: GISX), sending shares of the Tampa-based company skyrocketing.
The firm agreed to be acquired by Xerox for $29 a share or about $1.5 billion. It is a premium of about 49 percent over Global Imaging's Friday closing price of $19.50. Shares of the company shot up $9.15, or 46.9 percent to $28.65 in Monday afternoon trading on the Nasdaq Stock Market.
Joining forces with Global Imaging Systems gives Xerox access to their extensive customer base and adds more than 1,400 'feet on the street' selling Xerox systems, said Anne M. Mulcahy, Xerox chairman and chief executive officer.
Global Imaging serves the printer and copier needs of nearly 200,000 customers across the U.S. generating more than $1 billion in annual sales.
Shares Stamford, Conn.-based Xerox rose slightly by 10 cents, or 0.59 percent to $16.99 on the New York Stock Exchange.