Workplace solutions company Xerox is allegedly considering buying HP, the media were reporting earlier this week. Should the deal actually take place, it would be made through both cash and stock, although we still don’t know the deal’s potential value.
What we do know, however, is that Xerox is worth approximately $8 billion, while HP’s worth is estimated to be around $24 billion. According to the Wall Street Journal, Xerox will be backed by a “major” bank.
The deal could fall through at any point, as nothing is set in stone just yet, but the people familiar with the matter believe it’s a logical move. Both companies are struggling to reinvent themselves as the need for printed documents dwindles, and are trying to cut their costs. With the acquisition, both parties would save $2 billion in costs, apparently.
Xerox is a Connecticut-based company that makes large printers and copying machines for businesses. It has an annual revenue of approximately $10 billion. HP is a spin-off from HPE, and deals in smaller printers and printing supplies. It is also one of the largest PC makers in the world, with a revenue of more than $58 billion for the last year.
Last month, HP cut its workforce by 15 per cent, laying off as many as 9,000 people in the process. This saved the company approximately $1 billion in expenses. The company has laid out plans to revive its printing business.