Wave Systems Corp. (fka WAVXQ)

[Tsunami07]

Xerox to buy Affiliated Computer for $6.4 billion

September 28, 2009

http://finance.yahoo.com/news/Xerox-to-buy-Affiliated-rb-1225165860.html?x=0&sec=topStories&pos=1&asset=&ccode=

Xerox Corp plans to buy Affiliated Computer Services Inc in a $6.4 billion cash-and-stock deal that expands the copier company into outsourcing and data center management.

The deal, priced at a 33.6 percent premium to ACS's Friday closing price, is the latest in the active technology services sector. A week ago, Dell Inc said it would buy Perot Systems Corp. Hewlett-Packard Co bought Electronic Data Systems Corp in August 2008.

In its biggest acquisition ever, Xerox will pay 4.935 Xerox shares and $18.60 in cash for each share of ACS, totaling $63.11 per share based on Friday's closing prices, the companies said on Monday. That compares to ACS's record high share price of $63.66 in 2006.

Shares of ACS, which competes with Accenture Ltd and Computer Sciences Corp in data center management, jumped 27 percent to $55.24 on the New York Stock Exchange. Xerox shares fell 14 percent to $7.74.

The deal may help Xerox compete with printing rival HP, which significantly expanded its services segment last year with its $13.2 billion purchase of EDS.

"HP strengthened their position in terms of business services (in addition to) printing," said Gabelli & Co analyst Hendi Susanto. "Xerox may have to compete with HP, and this will strengthen their position."

Ursula Burns, chief executive of Xerox, said revenue from services will triple to an estimated $10 billion next year from $3.5 billion in 2008.

"Customers are saying, 'We need help with the entire document infrastructure.' We've got the technology piece of the back office and the technology piece of automation. We need help with the information piece," Burns said in an interview.

Xerox will assume ACS's debt of $2 billion and issue $300 million of convertible preferred stock to ACS's founder Darwin Deason. On an adjusted earnings basis, the deal is expected to add to Xerox's earnings in the first year.

The Norwalk, Connecticut-based copier company has been focusing on its so-called annuity business, in which customers consistently order supplies and services for their printers.

It derives some 70 percent of its cash flow from the sale of supplies, financing and services to repeat customers. But the economic downturn has forced some of its customers to slow their plans to buy new equipment or order service.

The companies expect annualized cost savings of $300 million to $400 million in the first three years after closing, which is expected in the first quarter of 2010. ACS CEO Lynn Blodgett said some jobs will be affected at the Dallas-based company.

After the deal closes, ACS will operate as a standalone unit, run by Blodgett.

J.P. Morgan and Blackstone Advisory Partners acted as financial advisors to Xerox for the deal, Citigroup Global Markets Inc was financial advisor to ACS and Evercore Partners was financial advisor to a special board committee at ACS.

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http://www.economicexpert.com/a/Xerox:network:services.html

Xerox network services:

Extensible Name Service also used the acronym XNS. It was an XML-based digital identity architecture developed by the XNS Public Trust Organization (XNSORG) starting in 2000. The XNS specifications were subsequently contributed by XNSORG to OASIS, where they became part of the [XRI (Extensible Resource Identifier)] and [XDI (XRI Data Interchange)] Technical Committees. XNSORG has since evolved into XDI.ORG and now offers community-based XRI/XDI infrastructure.

XNS (eXtensible Name Service) is a new XML-based protocol and open-source platform for universal addressing, automated data exchange, and privacy control. XNS uses a new

technology called web agents that allows publishers and subscribers of information to exchange, link, and synchronize XML documents over any digital network. In essence, XNS

gives web agents a common XML vocabulary to "speak," as well as a global naming and addressing service for finding each other on the Internet.

Like DNS, XNS is a globally distributed service that can be implemented by any ISP, portal,corporation, university, or other network service provider. Unlike DNS, however, all XNS

agencies and agents enter into registration agreements incorporating global terms specified by the XNS Public Trust Organization (XNSORG), an independent non-profit organization

responsible for governance of the XNS global trust community.

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Wave System's Trust @ the Edge Architecture and OneName's XNS Web Agents Combined to Enable Privacy Solutions for Multiple Platforms and Services

October 11, 2000

http://www.encyclopedia.com/doc/1G1-65937128.html

OneName Corp. and Wave Systems Corp. today announced that the two companies will jointly develop solutions that give consumers the power to manage their own privacy and sensitive information while using the Internet.

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XNS Public Trust Organization Announces v1.0 Specifications With Wave Systems

July 24, 2002

http://www.allbusiness.com/company-activities-management/operations/5910736-1.html

Wave Systems Corp. Open XML Specification for Digital Identity Management Combined With Trusted Computing Devices Provide the Basis for the Next

Generation XNS Public Trust Organization (XNSORG --- www.xns.org), a non-profit organization established to manage the future direction of the eXtensible Name Service (XNS) digital identity protocol, has announced the first version of the XNS Technical Specifications with Wave Systems Corp. as a Founding Sponsor.

Wave Systems, an industry leader in Trusted Computing hardware solutions and services, supports the XNS protocol as a strategic element for enabling the digital identity and relationship management infrastructure necessary for the next generation of web services.

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