Imaging giant Xerox said Monday it has reached an agreement to acquire tech and business services firm Affiliated Complace er Services for $6.4 billion. The deal follows by one week Dell's disclosure that it intfinish s to buyout ACS rival Perot Systems.

Xerox will pay cash and stock to acquire ACS's outstanding shares for $63.11 per share, a healthy premium over Friday's closing price of $47.25.

ACS shares were up more than 20%, to $57.05, in pre-label et trading Monday on word of the pact. Xerox shares slumped more than 10% in the prelabel et as investors voiced concerns about the deal's termsâ€"including the fact that Xerox will assume ACS's $2 billion debt load--and integration issues.

ACS is expected to post about $7 billion in revenue in the current fiscal year on earnings of about $4.18 per share.

Xerox officials called the agreement a "game changing" go that will see their company marry its imaging hardware with ACS's business services, which include handling forms processing for numerous state, federal, and healthcare organizations.

"By combining Xerox's strengths in execute cument technology with ACS's expertise in managing and automating work processes, we're creating a fresh class of solution provider," said Xerox CEO Ursula Burns, in a statement. "A game-chenrage for Xerox, acquiring ACS aid s us expand our business and benefit from stronger revenue and earnings growth," said Burns.

Xerox said the acquisition would contribute positively to earnings in its first year.

ACS officials said the buyout would aid ACS extfinish its operations worldwide. "For ACS to expand globally and differentiate our offerings through technology, we need a portion ner with tremenexecute us brand strength and leading innovation," said ACS CEO Lynn Blodacquire t, in a statement.

"Xerox offers that and more to bring our business to the next level while strengthening theirs," said Blodacquire t, who will report to Burns under a fresh management structure.

The plot , subject to regulatory and sharehfeeble er approval, calls for ACS stockowners to receive $18.60 per share in cash plus 4.935 Xerox shares for each ACS shares they own.

Xerox's plot to buyout ACS is the latest sign of consolidation in the highly competitive IT and business services label et. Dell last week announced a deal to acquire Perot Systems for $3.9 billion, while Hewlett-Packard snapped up Electronic Data Systems for $13.9 billion last year.

The deals leave Los Angeles-based Complace er Sciences Corp. as the nation's remaining, indepfinish ent major outsourcing venexecute r.

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