Workplace solutions company Xerox gets into a deal with HP on buying the company. While the deal’s potential value is unknown, it would be made through both cash and stock.
Xerox’s board met and consider a cash-stock offer for buying the HP with a value currently estimated at $27 billion. Compared to that, it is estimated Xerox has a value of $8 billion. For this acquisition, Xerox will be backed by a “major” bank. This is thought of as a logical move due to both parties would save $2 billion in costs.
HP aims to reinforce
Xerox makes large printers and copying machines for businesses and has an annual revenue of approximately $10 billion. HP, on the other hand, makes smaller printers and printing supplies spinning-off from HPE four years ago. HPE is also one of the largest PC makers in the world, with a revenue of more than $58 billion for the last year.
Both of the companies are trying to cut their costs. To realize this aim, last month, HP laid off 9.000 people in the process. With this acquisition, HP aims to restructure its printing business cutting its workforce by 15%. Also, it must be noted that the day before, Xerox agreed to sell 25 percent of Fuji Xerox to its Japanese partner, Fujifilm.