Xerox has begun negotiations to buy the world's largest print group, US-based R.R. Donnelley & Sons, according to reports from a US financial news site.
Bloomberg.com - quoting "people with knowledge in the matter" - says talks are in the early stages but a deal could be signed before Xerox completes its planned split into two companies later this year.
"Xerox would acquire R.R. Donnelley, founded in 1864 and based in Chicago, and merge some of it with its copier, printer and related-services business and the rest with its smaller business process outsourcing services, said the people, who asked not to be identified because the negotiations are private," according to the report.
"R.R. Donnelley, the owner of the Edgar financial-statement wire service, announced it planned to split into three publicly traded companies last year. A deal with Xerox would negate that plan, the people said."
Xerox announced earlier this year that it would split into two companies. Last month, Xerox named Jeff Jacobson as CEO of its document technology business, which will retain the Xerox name. Ashok Vemuri will take on the CEO role for the smaller Conduent business that will focus on business process outsourcing services.
Bloomberg says if the talks are successful Xerox would buy RR Donnelley and merge some of its operations with its post-split document technology and graphics business, Xerox Corporation, and the rest with its BPO business, Conduent.
Xerox has a current market value of about $US9.6 billion, while R.R. Donnelley has a market value of about $US3.9 billion.