HP considers Xerox takeover bid

November 8, 2019

HP’s headquarters in Palo Alto, California, USA 

HP Inc. has confirmed it is considering a takeover bid from rival printer and computing company, Xerox Holdings Corp. An offer of $22 per share has been made to HP, in a bid consisting of 77% cash and 23% stock, reports CNBC.

Commenting on the proposed takeover, HP confirmed on November 6 that discussions between the companies are ongoing, stating, “…we have had conversations with Xerox Holdings Corporation from time to time about a potential business combination. We have considered, among other things, what would be required to merit a transaction. Most recently, we received a proposal transmitted yesterday.”

“We have a record of taking action if there is a better path forward and will continue to act with deliberation, discipline and an eye towards what is in the best interest of all our shareholders,” the HP statement concluded.

Xerox recently struck a deal to sell stakes in its joint ventures with Fujifilm Holdings Corp., generating capital of $2.3 billion. It is also said by sources to have received an informal funding commitment from Citigroup Inc. If accepted, it has been speculated that the takeover deal could generate around $2 billion in cost synergies.

In addition to its computer and printing business HP is a major manufacturer of polymer Additive Manufacturing systems and announced its first metal Additive Manufacturing system, the Binder Jetting-based HP Metal Jet, at IMTS 2018.

Xerox entered into the Additive Manufacturing market for the first time in February 2019, when it acquired metal AM company Vader Systems. With the acquisition of Vader, the company gained its liquid metal AM technology, which uses affordable metal wire feedstock, its technology for hybrid manufacturing equipment integration, and its technology for the production of spherical metal powders.

Xerox is reported to have annual revenues of almost $10 billion, generated primarily from the rental and maintenance of its printers and photocopiers to businesses. For the fiscal year 2018, HP Inc. reported revenues of more than $58 billion.

www.xerox.com

www.hp.com



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