Xerox to Acquire Advectis, Inc.

Xerox Corporation (NYSE: XRX) plans to buy Advectis®, Inc. for $32 million. Advectis is the provider of one of the mortgage industry's most widely-used solutions for electronic document collaboration.
Xerox's expertise in document outsourcing and services led the company to Advectis, a privately-owned business based in Atlanta. In a predominately paper-based industry, Advectis' Web-based BlitzDocs Collaboration Suite helps lenders, brokers and investors manage the process needed to underwrite, audit, collaborate, deliver and archive loan documents electronically. Taking paper out of the process, the BlitzDocs® patented technology helps users reduce costs associated with the lending process, deliver better service, decrease credit risk by improving documentation processes and build a competitive advantage in capturing new loan applications.

"Anyone who has ever bought a home knows that the mortgage business is dependent on paper. Filling out an extensive number of forms is time and labor-intensive work," said John Kelly, president, Xerox Global Services North America. "We're looking to help clients reduce costs and transform their business by offering a better experience for both end-users and operations. Xerox's expertise in automating document processes is an ideal fit with Advectis' BlitzDocs paperless solution for mortgages. In an industry that is ripe for change, Advectis offers technology that improves productivity for its users while giving lenders better control of their processes."

According to Craig Focardi, research area director for the retail banking practice of research firm TowerGroup, "Enterprise content management systems are reducing the great paper chase in loan origination, where a lender controls the paper loan file and manually redistributes documents multiple times to multiple parties. Lenders are increasingly adopting document imaging and electronic content management as a major area of cost savings, faster loan processing and improved customer service."

The amount of paper associated with this industry leads to inefficient processes which, best case, are productivity drains and, worst case, can lead to a loss of control in the quality of the loans. TowerGroup estimates document management costs in loan origination totaled $3.2 billion last year.

A BlitzDocs electronic loan folder mirrors the paper loan folder used today but improves efficiencies in the loan cycle, allowing mortgage participants to view and process online documents anytime, anywhere. Clients benefit from a network with more than 35,000 broker shops, the top seven mortgage insurance companies and four of the top due diligence providers.

"With this acquisition, Advectis is positioned to create even stronger offerings, services and technologies for our clients," said Greg Smith, co-founder and chief executive officer of Advectis. "Partnering with Xerox makes perfect sense for the future of our business. Our combined expertise and resources means increased collaboration and decreased loan processing costs for BlitzDocs users."

Advectis was founded in 2000 and currently employs about 41 people, most of whom are based at the company's headquarters in Atlanta. Upon completion of the acquisition, all employees are expected to join Xerox. Smith will remain head of the organization, reporting to Kelly.

Xerox's all-cash purchase of Advectis also includes an additional performance-based supplement to the sale price. The acquisition is expected to close in the next 30 days, subject to customary closing conditions.

Xerox's industry-leading document technology and services portfolio includes consulting and outsourcing services, records management, digital imaging, e-discovery for litigation support and managed services in more than 160 countries.

Through its acquisition strategy, Xerox is identifying successful companies whose offerings align with Xerox's commitment to innovation and reducing the complexity of document management. Last year, Xerox acquired Amici LLC, a leading provider of electronic-discovery services, primarily supporting litigation and regulatory compliance, and XMPie, which provides variable information software for the graphic arts and marketing industries.

Xerox Completes Tender Offer for Global Imaging Systems

Xerox Corporation (NYSE: XRX) announced today that shareholders of Global Imaging Systems, Inc. (NASDAQ: GISX) tendered approximately 45.6 million shares, representing about 90.4 percent of the shares outstanding. According to the terms of Xerox's tender offer for all of the outstanding common stock of Global Imaging, shares that were validly tendered and not withdrawn have been accepted for payment. The tender offer expired at 12:00 midnight ET on May 8 and was not extended.
Until the acquisition is complete, six Xerox representatives will serve on Global Imaging's board of directors, giving Xerox majority board representation. Two representatives from Global Imaging will remain on the board.

Xerox intends to complete the acquisition of Global Imaging through what is known as a "short-form merger," meaning without a vote or meeting of Global Imaging's remaining shareholders. Each of the remaining shares of Global Imaging common stock (other than shares of which appraisal rights are required under Delaware law) will be converted into the right to receive the same amount as in the tender offer -- $29 per share in cash and without interest. The merger is expected to occur within the next several days. Following the merger, Global Imaging will immediately become a wholly owned subsidiary of Xerox, and Global Imaging's common stock will no longer list on NASDAQ.