Managed services News
Xerox Acquires Powerland, Expanding IT Services Reach Across Canada
‘[This acquisition] accelerates our position as key technology solutions provider in the North American market. Our SMB clients can now come to Xerox as a single provider for their IT solutions and print needs across North America,’ says Martin Bachant, president of Xerox Canada.
Xerox Holdings Corp. said Monday has acquired Canadian IT services company Powerland in an all-cash deal to strengthen its IT services offerings in North America.
Xerox did not disclose the financial terms of the deal, which was described by one executive as the largest in the company’s history.
Winnipeg, Canada-based Powerland serves customers across Canada and provides IT solutions and services such as cloud, hybrid cloud, cyber security and end-user computing. The company partners with Microsoft, Veeam, Lenovo and Dell, among others, to offer hardware and software solutions for customers.
“As we were looking at acquisition targets to help us grow our IT services business in the country, Powerland stood out as a best-in-class organization that closely aligned with our intention to provide a vendor/manufacturer agnostic set of IT solutions to support the technology and digital transformation goals of our SMB customers,” Richard Artese, general manager of Xerox IT Services, told CRN. “Their knowledge, scale and reputation made them the ideal company for Xerox to acquire.”
According to Norwalk, Conn.-based Xerox, research shows that SMBs will increase their IT spend in cloud infrastructure, managed IT services, collaboration solutions and cyber security. The acquisition of Powerland will enable Xerox to expand those services in North America to offer increased value to customers throughout Canada, said Martin Bachant, president of Xerox Canada.
“The expanded IT services capabilities means our partners can now work with our existing print customers to provide them with new technology offerings to transform their business,” Bachant told CRN. “[This acquisition] accelerates our position as key technology solutions provider in the North American market. Our SMB clients can now come to Xerox as a single provider for their IT solutions and print needs across North America.”
On Monday, Xerox stock stood at $21.78 per share, down 1.20 percent from Friday.
About 100 Powerland employees will come along with the acquisition, according to Ashley Penner, CEO of Powerland, adding that joining Xerox is a “game changer.”
“The combination of the Powerland and Xerox sales teams, client and partner relationships, as well as the Xerox and Powerland brands, will enable us to expand our footprint and accelerate growth in the North American IT services market,” Penner told CRN. “The acquisition provides us with a unique position to accelerate the growth of our IT services business and to become the top provider of technology solutions in the Canadian market.”
Powerland, which was founded in 1985, will operate under its current name with “A Xerox Business Solutions Company” added to the branding.
“The combination of Xerox IT Services and Powerland allows our clients in the Canadian market to come to Xerox as single technology provider with innovative and leading-edge solutions for both IT Services and print offerings,” Penner said.
Xerox has been buying up a variety of companies in the IT services space in the past couple years. In October 2021, it acquired Competitive Computing (C2), a Vermont-based IT services company. The company acquired both ITEC Connect, a UK leader in IT services, and Digitex, an IT services provider in Canada, in March 2020.
Xerox recently reported $1.78 billion in revenue for its fourth quarter, down 7.9 percent year-over-year. The company also reported $7.04 billion in revenue for the fiscal year. Fourth quarter and fiscal year GAAP earnings per share were $3.97 and $2.56, down $4.33 and $3.40 year-over-year, respectively