Xerox buys pension software firm, rallies on Citi upgrade

• Xerox (XRX +3.1%) is acquiring CPAS Systems, a Canadian developer of pension administration and record-keeping software for private and public sector clients. Terms are undisclosed.
• Xerox states CPAS' software is used to manage pensions for 2M+ people worldwide. It'll be offered as both a standalone solution, and as part of Xerox's HR outsourcing services solutions.
• Much like Lexmark, Xerox has been busy trying to diversify away from a slumping printing/copying hardware business. Services made up 55% of Q2 revenue.
• Shares are rallying today thanks to an upgrade to Buy from Citi, which is upbeat about the potential for Obamacare to lift Xerox's healthcare-related sales.