Published: Feb 06, 2013 3:41 PM EST

TALLAHASSEE, Fla. (AP) - Florida is offering to pay a business technology company $7 million to avoid a potentially costly lawsuit.
    
The administration of Gov. Rick Scott agreed in late December to pay the money to a subsidiary of Xerox. The company signed a seven-year contract to consolidate email accounts throughout state government.
    
Last year state, legislators cut off funding for the project. House Republicans said they were concerned that the savings associated with the project would not materialize.
    
But Xerox State and Local Solutions warned state officials last August that the company had already spent roughly $30 million on the project and it was prepared to sue to recover its investment.
    
A company spokeswoman said this week that Xerox agreed to the settlement to continue a "constructive working relationship" with the state.

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