Xerox buys Tektronix

 Xerox has agreed to buy the color printing

firm Tektronix for $950 million in cash, making it the No. 2 player in

office color printers behind Hewlett-Packard.

"This acquisition--the largest of its kind in Xerox

history--combines the strength of the Xerox brand, the breadth of our

product line, and our global reach with the technical excellence,

distribution capability, and the time-to-market focus of Tektronix,"

said the company's CEO Rick Thoman. The expanded Xerox office printing

unit will have more than 30 percent share of the office color printing

market, which is estimated to grow at an annual rate of about 23 percent

through 2003, according to International Data.

Xerox expects its color printer operations, based in Webster, New York,

will be combined with the Tektronix business. Xerox is developing plans to

combine its research, sales, and service operations. The deal is subject

to regulatory reviews and is expected to close within 60 days.