Xerox Expands into IT with $400 Million MSP Acquisition

Xerox has agreed to acquire the IT provider ITsavvy as part of its larger efforts to expand its IT services business investments.

ITsavvy owner GenNx360 Capital Partners announced on Thursday that it is selling ITsavvy to Xerox for $400 million. The Illinois-based IT provider has made its profit by providing technology infrastructure solutions and services designed to accelerate business outcomes.

Xerox's John Bruno

"As part of our reinvention we have created a greater organizational focus on our emerging IT Services capabilities to diversify our revenue streams in the geographies we serve," said John Bruno, president and chief operating officer at Xerox. “ITsavvy’s complementary offerings, aligned with our strong reputation, should accelerate growth in the United States, Canada, and the United Kingdom, while creating new avenues for us to help existing and new clients transform the way they work. They have a proven track record of success, and we look forward to bringing this highly capable and experienced team into the fold.”

The deal included a $180 million cash payment and is expected to close in Q4 of 2024.

ITsavvy's Munu Gandhi

“We are thrilled to join the Xerox team and eager to contribute to the growth of Xerox IT Services,” said Munu Gandhi, CEO at ITsavvy. “Together with Xerox, we plan to expand the portfolio of high-value services for our growing client base throughout the U.S., U.K. and Canada.”

Related:Cyera Acquires Trail Security for $162 Million

Xerox MSP Acquisition Strategy

Xerox has slowly acquired MSPs over the last few years, adding them to its portfolio of companies providing IT services to those in need. However, it only recently began to pivot toward IT services this year as part of a "Reinvention," or a realignment of its interests internally.

Some notable acquisitions include purchasing the Canadian MSP Digitex Canada in 2020. There was also the deal for MT Business Technologies in 2017, which allowed Xerox to acquire an Ohio-based dealer of multivendor office equipment.