Xerox Considers Buying Out HP: Report
Xerox Holdings Corporation (XRX) is contemplating making a buyout offer to computer hardware company HP Inc (HPQ), the Wall Street Journal reported on Tuesday.
What Happened
The board of the Connecticut-based company discussed the possibility on Tuesday, and is considering making a cash-and-stock offer, people close to the matter told the Wall Street Journal.
Xerox, a veteran printer and copy machine manufacturer, has a market value of $8.071 billion as of today, while HP is valued at $26.64 billion, more than three times its value, data from Yahoo Finance shows.
HP spawned from the Hewlett-Packard Company when it disbanded in 2015. The other offshoot Hewlett Packard Enterprise Company is not a part of the deal.
What’s Next
The company has received a funding commitment from an unnamed major bank to help with the buyout deal, the Wall Street Journal reported.
The publication mentions a possibility that Xerox doesn’t go through with the offer; — even if it does, the company might not succeed in acquiring a company three times its size.
Xerox’s consideration comes at the same time when it is ending a year-long dispute with the Fujifilm Holdings Corporation (TYO: 4901) over their joint venture Fuji Xerox.
The company has agreed to sell its 25% stock in the venture to Fujifilm for $2.3 billion, Bloomberg reported on Tuesday.
Price Action
Xerox’s stocks traded at a 0.03% loss as of press time. HP also lost 0.03% compared to Tuesday’s closing price.