A deal can be finalized by Darwin Deason, the hard-charging son of an Arkansas' chicken farmer and founder of Affiliated Computer Services, with Xerox Corp. Under the deal, the latter will takeover the former, paying it a huge sum of money. Deason had found Affiliated Computer Services in 1988.

The 69-year-old Deason, after associating briefly with the would-be private equity buyers, Texas Pacific Group and Cerberus, had converted the company into a multibillion-dollar provider of office outsourcing services.

ACS chairman Deason will acquire over 44 million shares of Xerox common stock, $300 million in convertible preferred Xerox stock, and $167.4 million in cash, if the deal with Xerox is successful.

On Monday, Deason said: "At closing, I will become one of the combined company's largest individual shareholders, and I intend to remain a long-term investor." However, Deason will be required to give up his seat on the company's board.

In the past, private equity firms have courted ACS, lured by its recurring revenue model and steady cash generation.

"The company's board twice rejected buyout offers, once in 2005 from TPG, then again in 2007 when independent board members decided a $62-a-share buyout offer from Deason and Cerberus Capital Management undervalued the company," said a source.

He added, "The breakdown with Cerberus was more over disagreements on how to run the process than the price. Given the failed Cerberus buyout, people didn't really think Darwin Deason, who controls 42 percent of the vote, really wanted to sell the company."

After the 2007 deal with Cerberus collapsed, accusing Deason of "bullying", five independent directors resigned from the ACS board.