Xerox Holdings ( XRX ) shares are trading higher on Thursday.

The firm has agreed to acquire ITsavvy, an Oak Brook, Illinois-based provider of integrated IT products and services, for $400 million.

ITsavvy, founded in 2004, provides integrated IT infrastructure solutions and has grown its revenue to over $400 million on a trailing twelve-month basis.

This deal amount includes a $180 million cash payment and secured promissory notes totaling $220 million, subject to standard pre- and post-closing adjustments.

“As part of our Reinvention we have created a greater organizational focus on our emerging IT Services capabilities to diversify our revenue streams in the geographies we serve,” said John Bruno, president and chief operating officer at Xerox. 

The transaction is expected to close in the fourth quarter of 2024 and is pending merger clearance.

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ITsavvy is currently a portfolio company of GenNx360 Capital Partners, a New York-based private equity firm.

The company expects the acquisition to be immediately accretive to adjusted earnings per share and free cash flow. Xerox management will further discuss the acquisition during its third quarter 2024 results.

According to Benzinga Pro, XRX stock has lost over 25% in the past year. Investors can gain exposure to the stock via Pacer US Small Cap Cash Cows 100 ETF and Small Cap US Equity Select ETF .

Price Action: XRX shares are trading higher by 4.25% to $10.93 at last check Thursday.

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