Xerox Plans To TakeOver PC giant HP Inc. for the $27 billion
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Xerox Plans To TakeOver PC giant HP Inc. for the $27 billion

Xerox HP takeover- next big brand
Pritish raj
Written by Pritish raj
[email protected] | Noida | Published on: November-06-2019 03:50 PM
  • Xerox Holdings is exploring a cash equity offer for the $27 billion PC giant HP Inc., a takeover that could combine two of America’s biggest names in office hardware.
  • Xerox, who settled on a slice of a $2.3 billion partnership with Japan’s Fujifilm Holdings Corp. a day before, may be angling to take over the largest personal computer manufacturer in the world after China’s Lenovo Group Ltd.

The Wall Street Journal confirmed that Xerox Holdings is exploring a cash equity offer for the $27 billion PC giant HP Inc., a takeover that could combine two of America’s biggest names in office hardware.

Xerox’s board met on Tuesday to discuss an arrangement that could lead to $2 billion in annual cost savings, the newspaper quoted unnamed individuals as saying. Although there is no assurance that the company would follow through, the Journal reported that any bid would equate HP to its market value at a premium. After regular business hours, representatives for the companies were not immediately available for comment.

Xerox, who settled on a slice of a $2.3 billion partnership with Japan’s Fujifilm Holdings Corp. a day before, may be angling to take over the largest personal computer manufacturer in the world after China’s Lenovo Group Ltd. Any agreement will boost its market share in printing and copying, which was hit hard by the global push toward cloud computing and other internet services.
Why Xerox— a brand associated with the copying industry— plans to fund a company’s purchase multiple times it’s market value is uncertain.

In addition to the proceeds from the sale of its stake in Fuji Xerox, Xerox has already secured an informal funding commitment from a major bank, the Journal reported.
Once a symbol for American technological innovation, HP itself is grappling with the rise of smartphones in a plateauing PC market. The business, which just last month appointed a new chief executive, plans to slash as much as 16 percent of its workforce as part of a turnaround aimed at cutting costs and improving sales growth amid its first four-year shift in top leadership.

HP’s printing business, a major source of revenue, has seen sales fall and analysts at Sanford C. Bernstein have recently called a “melting ice cube.”

In low-volume extended trading, HP’s shares are largely unchanged.

Xerox Holdings Corporation is a multinational American company that sells products and services for print and digital documents in more than 160 countries. The Hewlett-Packard Company or Hewlett-Packard was an American multinational information technology company headquartered in Palo Alto, California.

This will come as one of the biggest takeovers between two technology giants of the US and if completed this will affect Trade Market too.

About the author

Pritish raj

Pritish raj

Pritish Raj is a content writer at Next Big Brand. Hailing from the diversified state of Bihar, he is an engineer by education who chooses the way of poetry, photography, and writing to kick off his career.
Highly enthusiastic about brands and startups, he aims to be a travel content creator.

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