Xerox said it will acquire CareAR, an augmented reality company focused on field service. The purchase builds out Xerox’s software portfolio.
CareAR software enables remote agents and experts to guide field workers. The CareAR stack includes desktop and mobile software as well as smart glass devices. The returns for enterprises with AR-driven support is less travel, better uptime, and training improvements.
Xerox said the plan is to combine CareAR with DocuShare and XMPie to form a software unit. Former CareAR CEO Sam Waicberg will lead the unit. CareAR integrates with ServiceNow.
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On Wednesday, Xerox reported fourth quarter earnings of 36 cents a share, on revenue of $1.93 billion, down 21% from a year ago. For 2020, Xerox reported revenue of $7.02 billion, down 22.5% from 2019, with earnings of 84 cents a share. Xerox has been hit by the COVID-19 pandemic and the closing of offices.
To spur future growth, Xerox said it will launch its software business, transform Xerox Financial Services into a global payment unit that will lease technology and office equipment and invest $250 million in a corporate venture capital fund.
For 2021, Xerox said it expects revenue of at least $7.2 billion with free cash flow of at least $500 million.