DALLAS—A unit of Xerox Corp. said Tuesday that it is buying a benefits and human resources outsourcing unit from Hewlett-Packard Co. for $125 million.
A spokesman for Dallas-based Affiliated Computer Services Inc. said its purchase of ExcellerateHRO L.L.P. is expected to close this summer.
“This acquisition clearly demonstrates Xerox’s commitment to invest in human resources that will ultimately benefit all our clients,” ACS Executive Vp and Group President of ACS Human Resources Services Ann Vezina said in a statement.
ExcellerateHRO, which does not disclose revenues, currently has 350 to 400 clients and about 1,800 employees.
The benefits and HR outsourcing operation was formed in 2005 by then-Towers Perrin and EDS Corp., in which they combined Towers Perrin’s benefit administration services and EDS’ payroll and HR-related outsourcing services. EDS held a roughly 85% share in ExcellerateHRO, and Towers Perrin owned the rest.
In 2008, HP acquired EDS and its interest in ExcellerateHRO.
In June 2009, Towers Perrin, which merged earlier this year with Watson Wyatt Worldwide, sold its minority share to HP.
ACS’ purchase of ExecllerateHRO is its first since Xerox acquired it in February in a deal valued at $6.4 billion.