Xerox Completes Tektronix Acquisition

Xerox, based here, bought the Tektronix division, based in Wilsonville, Ore., for $925 million. That was $25 million less than the price announced in September, when the agreement was first struck, due to balance sheet adjustments.

With the acquisition, Xerox will about double its reseller base to 16,000, although not all of the resellers will sell products from both companies, said James Firestone, president of Xerox's channel group.

Firestone said Tektronix has been more aggressive than Xerox in using the Internet to market and promote its products, and the acquisition will combine Tektronix's Web expertise with Xerox's reseller base.

Both companies will concentrate on integrating the Web into all aspects of their business, he added.

"There is pressure on the two-tier distribution model," Firestone said. "The roles of distributors and resellers are at risk of being disintermediated because of the Web."

While Xerox still is working out branding issues, Firestone said a permanent branding strategy will be unveiled in the second quarter that will incorporate insignia from both companies.

"The permanent branding will [combine] Tektronix's heritage of technological strength with Xerox's reputation," Firestone said.