Xerox continues to extend from multi-function printer (MFP) hardware to various IT services and consulting services -- potentially competing with channel partners along the way.
The latest deal involves Xerox acquiring Go Inspire, a full-service marketing agency and consultancy that has data science and analytics expertise. Financial terms of the deal were not disclosed.
This is technology M&A deal number 616 that ChannelE2E has covered so far in 2022. See more than 1,000 technology M&A deals involving MSPs, MSSPs & IT service providers listed here.
Xerox Acquisitions & SMB IT Services: Channel Conflicts
Go Inspire, founded in 1992, is based in Leicester, England. The company has 125 employees listed on LinkedIn. Go Inspire positions itself as a "communications performance partner" that helps clientele to connect with more customers.
Go Inspire's areas of expertise include Direct Mail, Transactional Mail, Integrated Marketing Solutions, Programmatic Direct Mail, Data Driven Creative, Data Loyalty Programs Management, Digital CRM, Marketing Strategy and Consultancy, and Actionable Insights, the company indicates.
Xerox has been busy buying IT consulting firms and MSPs across North America and Europe. Additional deals include acquiring:
- February 2022: Powerland, an IT services provider in Canada.
- June 2021: Document Systems of Southern California.
- April 2021: Group CT, a document management provider in Eastern Canada.
- October 2021: Competitive Computing (C2), a Vermont based IT services company
- March 2020: ITEC Connect of the UK and Digitex of Canada.
Xerox Acquisitions & SMB IT Services: Channel Conflicts
No doubt, Xerox is under pressure to diversify its revenue stream. The company's overall revenue fell 2.5% to $1.67 billion in Q1 of 2022, down 2.5 percent from Q1 the previous year, according to an April 2022 earnings report.
In stark contrast, Xerox's IT services revenue grew more than 20% on an organic basis in Q1 2022, the company said during an April 2022 earnings call. "The SMB IT Services market is attractive as it is growing mid-single digits, competition is highly fragmented and our IT Services business scales efficiently," former Xerox CEO John Visentin said during that call. (Visentin died unexpectedly in June 2022.)
More than the traditional MSP market, Xerox has been launching managed services focused on robotic process automation (RPA) and data solutions.
